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BookM,

Wow. I can't thank you enough for the amount of information you sent to me. I appreciate the time you took to post all of it.

I haven't yet figured out how to cut and paste on this board, so please bear with me. In terms of diversification....My 403B was diversified through the help of my agent (via my employer), spread over 8 stocks (evidently over small-cap, large-cap, international, bonds, etc.) It was making money, certainly more than the index fund. However, yesterday I transferred all of my funds over to the Equity Index fund due to all the info. (including this web site!) that I have read about index funds. I think part of the reason why I did this was because I know next to nothing about about investing and felt uncomfortable taking one man's word for it (my agent). I realized this discomfort made me hesitant to attempt to increase the current percentage I put into my 403B. So, I figured since I was comfortable with index funds that I would change it all over and then increase my percentage.

Do you think that I should undo what I did? :-)

Lets say I do go back to diversifying as you indicated, assuming that the combination set up by the agent is a good choice, you are then saying that it would be unnecessary to make sure I toss 3K a year into the Roth (index fund)? The reality is that I don't have that much money to spread around since I am saving for my first home. Perhaps the answer is to put some money into both?

Thanks again for the welcome, and for the time that you have taken to be helpful to me. I dare say that the money I paid (becoming a member)to ask one question was worth it! :-)

-MTBer

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