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Author: joelxwil 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 75383  
Subject: Re: Roth IRA Splits Date: 11/22/2013 3:30 PM
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With that amount of money, I would suggest a good mutual fund. I got out of mutual funds some time ago and went into stocks, so I have not been following the performance of mutual funds. When I was doing that, I used a good charting and graphing software package (Fasttrack) to look at the performance of mutual funds and then to monitor the ones I had, comparing then with the averages and other mutual funds. While mutual funds do not, in general, beat the averages, careful selection and trading of mutual funds did allow me to do better than most of the averages. The fund managers do not like you to ever sell their funds, but if they want you to stay with their fund, they should learn to perform better. I do not recommend active trading of mutual funds, but generally a minimum 90 day hold works out OK.

When the market is performing well (generally speaking) the small caps outperform the rest of the market. So another alternative is just to buy IWM when the market is going up. IWM is traded very well (but not perfectly) by the (8,55) moving average crossover. That is very simple, and gets you about 10% per year. Also, you miss the major draw-downs.

I would not trade individual stocks with that amount of money. Other people may have other ideas, but I think that to trade individual stocks you should have at least about $100,000 distributed over 10 stocks.
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