Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Where to invest my 2011 Roth Contribution?
Old 01-09-2011, 05:32 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2004
Location: Metro DC Area
Posts: 134
Where to invest my 2011 Roth Contribution?

A little about me. I've posted on here a few times in years past. Now I need some help. I'm 31 and earn $85,000 per year in a federal job. I've been with the feds for 8 years, and I can retire at 57 with about a 1/3 of my salary in pension income. I'm single with no wife, no kids, and no mortgage. I have no debts. My assets are as follows:

Money Market - 140k
Individual Stocks (Mostly U.S.) - 98k
S&P 500 Index Fund in brokerage account - 24k
Roth IRA - Vanguard Total US Stock Market - 49k
TSP (401k) - 2040 Target Date Retirement Fund - 138k


I'm looking to put my 2011 contribution of $5000 into my Vanguard Roth IRA soon. I'm not sure if I should just add another $5000 to the Total Stock Market Index Fund. I'm already heavily weighted in U.S. Stocks. I was thinking maybe a bond fund, or REIT, or Commodities Fund, or Emerging Markets Fund. However, I'm concerned that some of these funds have already hit a bubble or will be hitting a bubble very soon. Do you have any advice for me?
__________________

__________________
daystar 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!

Old 01-09-2011, 06:34 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
Have you thought about having an investment plan with its Investment Policy Statement describing your overall Asset Allocation among stocks (US + foreign) and bonds? if you had one, you would just invest according to your plan.

Spend $20 and get a book on investing from Larry Swedroe or from this list:
Investment Books On second thought, spend $50 (or go to the library) and get 3 books.
__________________

__________________
LOL! is offline   Reply With Quote
Old 01-09-2011, 06:45 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,907
Quote:
Originally Posted by LOL! View Post
Have you thought about having an investment plan with its Investment Policy Statement describing your overall Asset Allocation among stocks (US + foreign) and bonds? if you had one, you would just invest according to your plan.

Spend $20 and get a book on investing from Larry Swedroe or from this list:
Investment Books On second thought, spend $50 (or go to the library) and get 3 books.
Good advice. I always look for used books first, here:

BookFinder.com: Search for New & Used Books, Textbooks, Out-of-Print and Rare Books
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-10-2011, 12:46 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
I follow Larry posts on the Bogleheads site and agree that he is a good source of information. But I suspect that he does not specifically address use of the TSP in a retirement plan. I would not put bonds in a Roth when I have the G Fun in the TSP. I have REITs in an IRA and that may be a good fit for your Roth since they are not available in the TSP. That is also true for EM and commodities but commodities are IMHO not as good a fit since they don't usually generate much dividends. EM is up to you, if you don't have them anywhere else and want them then they might fit in the Roth as well.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers 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
Roth IRA contribution limit for 2011? Mill FIRE and Money 8 10-29-2010 12:39 PM
2011 and 2012 tax planning... Roth IRA and Roth 401k jIMOh FIRE and Money 6 05-02-2010 11:20 AM
Roth IRA Contribution? fjammer22 Young Dreamers 13 09-17-2009 11:49 PM
Roth Contribution Advice 10at6 FIRE and Money 7 08-08-2008 09:18 PM
what are you buying with your roth contribution? Berkshire_Bull FIRE and Money 10 01-06-2005 05:12 PM

 

 
All times are GMT -6. The time now is 12:36 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.