Posted: 3/14/2011 12:31:41 PM EDT
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I have been reading "The Four Pillars to Investing" and have a few questions.
Is there a penalty assessed for shuffling around funds inside of a Vanguard Roth IRA to re-balance my portfolio? Currently my Roth has two funds, an international total index fund and the Star fund. If I wanted to add a S&P 500 index (VFINX) could I then reduce some of my Star fund to increase the S&P 500 fund? I am still researching to see if there are any costs (or more important any penalties) for doing so. I have only had this Roth for about five years now and never had any real plan, this book has been a big help. Currently I am thinking of adding the S&P 500 index, a small value index, and an emerging markets index fund to the mix. With interest rates low right now, would it be better to wait before adding a short term bond fund? My portfolio would be around 20% bond allocation so that is a bit hot on the stock side. Any suggestions or areas that I should research some more? |