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Subject:  Re: What to do with a losing IRA Date:  11/26/2004  8:10 PM
Author:  jesserivera67 Number:  43290 of 93709


Well don't fret for one thing. You're a youngin' and that's a good place to be and the fact that you both have Roth's is great. (I assume you're taking advantage of a 401k somewhere hopefully???)

50%? Ah, that's peanuts compared to a bunch of other folks so don't feel bad.

Joelxwil's options are pretty decent with respect to Scottrade and Ameritrade. I'd either go for Scottrade or Vanguard myself.

As far as timing the market that's really up to you. Joel seems to have had some success with it and I recall looking at his results and they were respectable for at least the last 5 years if I remember correctly.

I'm one of those Long term buy and hold types that rebalances every 12 months or so. I will admit to some timing however. If I see things are getting hot and my P/E's are getting out of whack then I might rebalance a bit earlier. I've maintained a very diversified portfolio and was able to escape the bear market without too much damage (but there was damage so don't think I go off free either!)

Pick up a book and have a nice read. The fool has plenty of articles on investing. I maintain a mixed portfolio of index and active funds averaging about .5% expense ratio. I never pay more than 1% for a fund. Just not worth it IMHO.

I'm going to take a leap of faith and say you're looking for something fairly simple so here's a thought...

Rollover your account to Vanguard
Throw 90% or 100% (remember you're young) into the Total Stock Market Index fund and the rest in the Total Bond Market Index Fund. Rebalance ever year or so and you're.

A slightly more complex strategy is to open yourself up to some Value fund and then some small caps. Maybe...

100% Portfolio
25% Large Cap Growth/Blend
30% Large Cap Value
20% Small Cap Growth/Blend
25% Small Cap Value

Then let's go ahead and add a little Foreign flavor to our mix so you might have...

100% Portfolio
25% Large Cap Growth/Blend
25% Large Cap Value
15% Small Cap Growth/Blend
20% Small Cap Value
15% Foreign Large Growth/Blend

Hmmm, missing a REIT in there...

100% Portfolio
25% Large Cap Growth/Blend
25% Large Cap Value
10% Small Cap Growth/Blend
20% Small Cap Value
15% Foreign Large Growth/Blend

How about some emerging market? Foreign Small Cap Value? Precious Metals anyone?

You can offset the portfolios to your liking with the appropriate % of bonds. It really all depends on the type of risk you're willing to take. The more risk...the more return. You want to turn your risk down a notch? No problem...pump up with some short term bond funds, not more than 10% or so though unless you are truly risk averse. You've got a lot of working years ahead so you want to take advantage of them and grow your portfolio. You can just hold on the above portfolio's, rebalancing once a year...or if you really feel lucky, use a timing strategy (although I would recommend against it but that's me.)

Best of luck to you!


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