I think that people only need to to really worry about asset allocation, when they are EITHER getting close to retirement say 50-55 for the normal retirement age or they have a large portfolio >100K.In your case you are neither. If you are comfortable enough to invest in individual security than I am sure you would be ok with investing the entire 5-6K now and even the 10K by next year in equities.Given the relatively small amounts I would highly recommend using your IRAs to invest in funds and save individual stock investments for your taxable accounts. (IMO The real beauty of individual stock investments is the ability minimize taxes). If you want to invest in an agressive managed fund like some of the Janus that is ok. (I just read an article (IIRC in Kiplingers) that Janus is slowly recovering from its fall from the pedestal when the buble burst. Obviously, us old fogeys will tell you to use boring old total stock market index fund, but if trying to beat the market gets you motivated to regularly invest that is more important than saving $50/year in additional expense for a managed fund.For the next 5 years I look at invested in a variety of funds covering different asset class, so for example large growth, which I think the Janus Smart Portfolio, maybe next year looked at international, in 2009 small cap...One comment about expenses, I do recommend invested enough in a individual fund to be able to first get waiver on the annual or quarterly fees (for Vanguard that is $10/quarter if you have less than $5,000) and secomd qualify for a lower expense version, example Fidelity Spartan Fund require a 10K investment.
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