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Posted: 7/15/2014 1:16:23 PM EDT
[#1]
30% in money market at your age seems a little high to me.. but wait for the experts
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Posted: 7/15/2014 1:53:00 PM EDT
[#2]
Quote HistoryQuoted:
30% in money market at your age seems a little high to me.. but wait for the experts Unfortunately the experts are bound by SEC/FINRA regulations and can NOT give investment advice in public forums. 
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Posted: 7/15/2014 5:11:08 PM EDT
[#3]
Quote HistoryQuoted:
30% in money market at your age seems a little high to me.. but wait for the experts I didn't look up the funds but no way you have that much in money markets. That is a for sure loss vs inflation. Here are the Vanguard funds I like VTSAX VFWAX VGELX VGSLX I have roughly 50% in the first one, 30% in the second, and 20% split between the last two. |
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Posted: 7/16/2014 12:09:30 PM EDT
[#4]
Quote HistoryQuoted:
I didn't look up the funds but no way you have that much in money markets. That is a for sure loss vs inflation. Here are the Vanguard funds I like VTSAX VFWAX VGELX VGSLX I have roughly 50% in the first one, 30% in the second, and 20% split between the last two. Quote HistoryQuoted:
Quoted:
30% in money market at your age seems a little high to me.. but wait for the experts I didn't look up the funds but no way you have that much in money markets. That is a for sure loss vs inflation. Here are the Vanguard funds I like VTSAX VFWAX VGELX VGSLX I have roughly 50% in the first one, 30% in the second, and 20% split between the last two. His percentages only add up to 70% of his portfolio and he made it sound like the rest (30%) is invested in money market |
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Posted: 7/16/2014 3:50:56 PM EDT
[#5]
Quoted: Been reading alot of the threads on here about stellar returns and looking at my own portfolio, I am a little disappointed. I am 37 years old and had hoped to have passed the 100k mark by now. I am close to that mark between different accounts, but would like to kick it into overdrive. here are my holding in my core Vanguard IRA account. What better allocations could I make besides these: VFIAX 20% (S&P 500) VNQPX 10% (Is this VQNPX? If so, it's a Large Cap Blend, tries to beat S&P 500) VINEX 10% (Non-US small cap growth) VBLTX 10% (Long bond index) VTIVX 20% (Target Retirement 2045) The rest is in money market, trying to decide where to go next. Do I sell it all and just go with the Target Date fund alone? I am a big fan of the coffeehouse portfolios and would like to stay with 5-6 core funds, instead of a bunch of different ones. VFIAX and VQNPX are very similar, except that the second has a higher expense ratio because it's actively managed. VBLTX is the long term bond. Yes, it historically has the highest returns in the bond area. But, interest rates are at all time lows right now. When interest rates rise, bond prices will fall, and the value of the bond fund will drop for a while. The longer the duration of the bond, the greater the fall in value with rising interest rates. From Forbes:  As you can see, a long term bond is quite sensitive to interest rate increases. VBLTX has a current duration of 14 years, so a 1% increase in interest rates would cause a drop of 14% in value. These calculations are for individual bonds, but a bond fund would move in a similar manner. VINEX gets you some international exposure, but it's mostly small cap. Small cap typically has wider swings in value, both in gains and losses. Some international large-cap exposure wouldn't be a bad idea. VTIVX is a target date retirement fund. As you get closer to 2045, the fund shifts away from stocks and more towards bonds. Since you're still 29 years away, this fund is mostly stocks, which means you probably have a lot of overlap with the VFIAX and VQNPX. You don't have any real estate and don't have any emerging markets. You don't have any precious metals. Keeping 30% in a money market fund is like sticking it under your mattress. You're not earning squat on that. You're actually losing, since it's not keeping up with inflation. Cashing out or keeping money in cash only pays off if you happen to time the market and cash out just before a crash. If you do this, you'll look like a genius. If you cashed out in 2008 after the great recession, you've missed out on 6 years of tremendous bull market. You can't time the market. If your have access to the majority of Vanguard funds, consider the following: 80% stocks, 15% bonds, 5% Real Estate. 50% in either VOO (S&P 500) or VTI (Total US Stock Market Fund). 20% VT (Total International Stock Market). 5% VWO (Emerging Markets). Pretty volatile, so don't put too much in there. 5% VGPMX (Vanguard Precious Metals). Also quite volatile, so be conservative in your amounts. 7.5% BND (Vanguard Total Bond Fund). It's duration is about 5 years, which is like an intermediate bond fund. 7.5% VTIP (Vanguard TIPS. Inflation protected Treasury bonds) 5% VNQ (Vanguard's REIT). REITs are volatile, but tend to move differently than the rest of the market. Most of what I listed are ETFs, but most are also available in Investor, Institutional and Admiral funds. The Institutional and Admiral funds have very low expense ratios. For the funds you've listed, it sounds like you can buy them. The ETF, Investor, Institutional and Admiral funds of the same name have identical holdings but have different minimum investment values. I also like the Coffeehouse portfolios. Alternatively, buying a 2045 Target Date fund isn't a bad idea at all. However, most target dates don't have any emerging markets (or very little) and don't have any REITs in them. If you wanna keep it simple but still get a little EM and REIT exposure, you could buy 90% into the 2045 fund, 5% in VWO and 5% in VNQ. (I'm not an investment adviser and I didn't stay in a Holiday Inn Express last night. I could be completely and totally wrong. I'm just a guy on a gun board giving my own random opinions. But, my portfolio is quite similar to what I've described.) |
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Posted: 7/17/2014 11:54:22 AM EDT
[#6]
Take some of what you have in the money market and put in here.
VGHCX Healthcare fund The money market isn't paying shit. Hasn't for a while now. I only have something in there now for emergency funds. |
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Posted: 7/18/2014 11:16:55 PM EDT
[#7]
Agreed it isn't best idea to keep so much in a MM. I just wasn't sure where to put it.
Thank you for all the suggestions! |
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