Hi everyone,I have a small Roth IRA that contains approximately 10 percent of my non-pension retirement portfolio. I do not plan on investing further in my Roth at this time, as I invest in a 457 through my employer. Currently my Roth is invested 100% in iShares Gold Trust (IAU), though I'm uncertain if I'm willing to risk the volatility of gold or any other commodity, for that matter, over the long-term. The rest of my portfolio, in the 457, is in a target retirement fund (Vanguard 2025, VTTVX), and basically I want to avoid overlap between the 457 and Roth IRA, so a similar target fund is not of much interest. Any ideas on what to do with this 10 percent of my investment portfolio? I can't rollover the Roth anywhere, other than to another Roth, so I'm not sure what to do. Stick with gold as a hedge? Experiment with bonds? My goal is simplicity at this point, thus why I chose a target fund.-Narn Ceredir
VTTVX is a good conservative choice as it is: 51.2% VTSMX21.3% VGTSX27.5% VTBIXIn other words, it is a Large Cap Growth and Value Blend of domestic and foreign stock index along with total bond index. So, fees are very low with plenty of diversification and pretty much a current buy. However, what's missing are small caps, but they IMHO are over priced right now. So, it would be best to wait with a very safe or reasonable bond fund until the next panic.Very Safe Bonds for now:VSGBX if over $3k, VSGDX if over $50kReasonable Bonds for now:VFIIX if over $3k, VFIJX if over $50kSmall Caps during next panic:NAESX if over $3k, VSMAX if over $10k.Of course there are more aggressive options currently available (FTE,F,GM or AA) but I don't advise that for more than 1% of the portfolio.
Suggestion-- target no more than 10 percent of the porfolio in Gold - how about a percentage in dividend stocks? Do you have an overall plan - that is say - so much in stocks ,bonds, Treasuries, cash CD.s and commodities? If so try to align current holdings with your game plan.
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