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401k rollover to IRA
Old 02-13-2012, 10:16 AM   #1
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401k rollover to IRA

I have an older 401K that I rolled over to an IRA at E-trade some time ago. I used it mainly to buy/sell some stocks and made some gains. However, I'm considering buying some mutual funds and letting them do the work for a while. What do you think? Any mutual funds you'd recommend? I'm currently 34 so I can stomach some risk and volatility.

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Old 02-13-2012, 10:28 AM   #2
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It's kind of hard not knowing what your goals are and what not. e.g. do you have dependents? emergency fund? spending? when do you want to reach retirement? etc.

Maybe read the boglehead books. I've also noticed, most people here refer others to boglehead for a portfolio critique.

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Old 02-13-2012, 10:34 AM   #3
Confused about dryer sheets
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I actually just ordered a boglehead book as mentioned on these forums. Waiting for them to arrive.

I actually have an employer sponsored 401k with my currently employer now that I actively contribute to, as well as maxing out their company match.
I currently have 0 dependents but will be getting married in August. I have a sperate savings account that I regulary put money into as well. I'd like to retire around 55. That's my goal that I'm driving toward. Right now the funds in E-trade are sitting there, so I wanted something to earn income. I did some research but there are so many funds available. I did look at Vanguard's site and some of their prepopulated funds, such as VTIVX.
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Old 02-13-2012, 12:04 PM   #4
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With MF's (or ETF's may be good for you), you are diversifying away the single-company risk you have with individual stocks. So instead of selecting good companies, you need to select good portions of the market in which to invest and then find the MF/ETF that best invests in that segment for you. Possibilities are large companies, small companies, fast growing companies, dividend paying companies, foreign companies, energy companies, real estate, and bonds, among many others. Most here would say don't try to select winning market segments, but just invest in them fairly widely so that you always have something in the next top performing segment.

So the first thing to do is decide how you want to spread your money within the possible market segments. Then select MF's that select companies mostly within that segment. That way you don't end up with five MF's that are good but all invest in something close to the S&P 500.

In addition to long-term performance, look for low costs, stable management (is the current manager/team responsible for those long-term gains?), no load, fees, tax efficiency (if applicable), and availability at your broker (or direct with the fund company).

You can't go too wrong with very low cost index funds or ETF's. ETF's at your broker that are commission free may be your best bet. For actively managed MF's look for good long-term performance (10+ years preferably) with a fund management firm that has several good performing MF's and hopefully a good management rating from

Here's the strategy I roughly follow (a "slice and dice" style that can utilize a lot of different funds):
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Old 02-13-2012, 01:26 PM   #5
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Since you're making changes, I suggest that you decide on an overall asset allocation (aka AA), most likely x% to domestic stocks, y% to international stocks and y% to fixed income, and then look at your current AA compared to your target. Then, decide on individual funds.

You'll need to decide whether you will look to just your investments or to yours and your fiance's combined or maybe do both.

I'm partial to Vanguard's index funds due to their good selection, service, reputation and low costs, but there are other good no-load, low cost index funds out there as well.

If you end up just replacing individual stocks with a mutual fund, then I think the Vanguard Total Stock, or 500 Index or Value Index or Growth Index are all good choices depending on how broad or narrow stock exposure you want.
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Old 02-14-2012, 02:28 PM   #6
Confused about dryer sheets
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Thank you for the information. I've subscribed to Morningstar and will research some funds on there. Thanks again!

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