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Hello,

I posted this on the index investing board, and someone there thought I might get some good responses here.

I'm 26 years old, and work for a large state university. We fall under the 403b catagory. For the last two years, I have been putting monthly deposits into a 403b account with Fidelity. The vendor options when I enrolled were very limited, so I picked the best growth funds I could find. No index funds were offered. However, there have been recent changes which now open up all kinds of vendors and funds as possibilities, including indexes.

Here's the question: Is it better to max the Roth IRA contribution in an index fund, or keep contributing to the 403b? There is no employer match in the 403b, so it seems to me that the Roth is the priority. Also, my tax bracket isn't all that high, so I don't think the taxable contribution would hurt that much. So far, my plan is to
1. Put $4000 annual max (wife and myself) Roth IRA
contribution into Vanguard Growth Index.
2. Contribute $2000 (all I can afford) through the 403b into the Fidelity account I already have established. This account consists of two
managed funds.

Does that sound reasonable? What should I change? Should all of it go into an index? Should I worry about diversification with a 40 year horizon?

Sorry about the length. Also, if this is not the appropriate board for these questions, please let me know. As I said, I'm new here, and trying to set the record for the longest first post.

Thanks in advance for any answers.
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