Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Investing in mutual funds
Old 01-13-2006, 09:05 PM   #1
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 329
Investing in mutual funds

So I've been thinking of investing in some mutual funds with Vanguard. However, I'm not really sure of the best way to start out, as this page makes it sound like there are a lot of fees for starting small.

I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees? I'd like to diversify more, but it looks like the most I could diversify would only be three funds ($3k min per fund), and that still isn't very diversified. Does anyone have any suggestions? I don't think I can achieve anything near what Spanky mentioned below, but I'd like to do more than just leaving my money with ED.

TIA,
NP


Spanky said:
Quote:
A 60/40 slice and dice portfolio would return 8.01% YTD.


% of asset YTD Adjusted
Vanguard Value Index (VIVAX) 12.00 8.41 1.01
Vanguard 500 Index (VFINX) 12.00 6.40 0.77
Vanguard Small Cap Index (NAESX) 6.00 8.73 0.52
Vanguard Small Cap Value (VISVX) 6.00 7.25 0.44
Vanguard REIT Index (VGSIX) 6.00 12.78 0.77
Vanguard International Value (VTRIX) 6.00 18.47 1.11
Vanguard International Growth (VWIGX) 6.00 15.32 0.92
Vanguard Emerging Markets Stock (VEIEX) 6.00 31.20 1.87

Vanguard Short-term Bond Index (VBISX) 10.00 1.21 0.12
Vanguard Short-term Federal (VSGBX) 10.00 1.61 0.16
Vanguard Intermediate-Term Bond Index 10.00 1.34 0.13
Vanguard Intermediate Treasury (VFITX) 10.00 1.95 0.20
8.01%
__________________

__________________
NinjaPigeon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Investing in mutual funds
Old 01-13-2006, 09:16 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
Re: Investing in mutual funds

Quote:
Originally Posted by NinjaPigeon
I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees?
You might consider investing it in either the Star fund (VGSTX) or one of the Target Retirement funds (VTTVX, etc.). This could get you the diversification you want and help avoid those fees.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Investing in mutual funds
Old 01-13-2006, 09:20 PM   #3
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 329
Re: Investing in mutual funds

Oh, I forgot to mention I already have my Roth IRA through Vanguard and invested in their 2045 fund. So I'd like to not put all my eggs in one basket (or fund as it were!). I will check out VGSTX though.
__________________
NinjaPigeon is offline   Reply With Quote
Re: Investing in mutual funds
Old 01-13-2006, 09:46 PM   #4
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Re: Investing in mutual funds

Quote:
Originally Posted by NinjaPigeon
Oh, I forgot to mention I already have my Roth IRA through Vanguard and invested in their 2045 fund. So I'd like to not put all my eggs in one basket (or fund as it were!). I will check out VGSTX though.*
You might want to consider a few books.
Work Less, Live More by Bob Claytt

Also, Bogleheads guide to investing.
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: Investing in mutual funds
Old 01-13-2006, 09:57 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
Re: Investing in mutual funds

Quote:
Originally Posted by NinjaPigeon
I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees?
Sounds like you want to get to the destination without making the trip.

Yes, put it into one, two or three funds. Don't worry about being totally diversified at the beginning of your journey. Each fund has plenty of diversification by itself. Save more money, invest into another fund when you get more assets.

Example: Invest in a large cap value index, a small cap index, an international index to start with.
__________________
LOL! is offline   Reply With Quote
Re: Investing in mutual funds
Old 01-14-2006, 07:42 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: Investing in mutual funds

Hmmm

If you are already invested in VG 2045 - why not put the rest in 2045. Just because some is Roth and some is taxible is no big deal.

It only takes one fund.

Unless you are full time in the investment business.

heh heh heh heh

Don't confuse hormones with investing - it ain't that complicated.

Of course,I never follow my own advice - at age 62 - it's probably too late to give up my drug of choice - Norwegian widow DRIP stocks - but I'm working on it.

At 12 years into ER - the real deal is VG Lifestrategy(a forerunner to Target Ret. Series) - led sled dog plus small defined pension plus SS next month.

If you are really really bored - read books on investing, kayak, fish, golf, or or - there is always the vast range of real estate - to immerse yourself.

Just don't confuse it with retirement funding.

Heh heh heh heh

Edited - changed 'investing' to retirement funding. I confuse myself often.
__________________

__________________
unclemick is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
My 401k's expense ratios, Bogle, lowest-cost quartile data for stock funds? Dude FIRE and Money 19 02-07-2007 02:17 PM
Please help - question on Mutual Funds ADJ Young Dreamers 2 01-27-2007 09:58 AM
Canadian Mutual Funds nwsteve FIRE and Money 0 09-26-2006 04:07 PM
Stocks or Mutual Funds renferme FIRE and Money 7 03-01-2006 07:14 PM
M* discovers that ETFs are more tax efficient than mutual funds Nords FIRE and Money 4 02-15-2006 07:14 PM

 

 
All times are GMT -6. The time now is 06:58 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.