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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Re: Tips for my first $5k IRA investment? Date: 3/7/2012 12:07 AM
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...As my company uses Vanguard for 401k, my dad recommended that I use T.Rowe price to "diversify". Does his logic have any merit?
...



They are both good companies so it isn't bad advice but about the only real risk you would be reducing would be that one of the companies would have an unlikly MAJOR computer problem and all of your money would be locked up for a short time until they got it fixed. This has happened during the "flash crash" and a few other times where a major company was unable to execute orders for a while. Since this is a retirment account not being able to trade the account for a short period of time should not be an issues.

...and a person recommended that I choose one Index/ETF for now. Thoughts? (see below)....

There are lots of good options and the big thing at your stage is actually saving the money and getting into good low costs investments. One to three index funds would be fine for the next few years.
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