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Roth advice?
Old 12-01-2013, 09:17 PM   #1
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Roth advice?

Hello, first post here.

My Roth is 8% of my 401K. My 401K is Asset allocated and Diversified properly (through my company) the way I want it. My Roth is 100% VSS with Vanguard and has done well this year. I am happy with VSS and want to keep.

My question is…in your opinion should I invest my 2014, $6500 contribution in more VSS or another ETF? If so, what would be another good ETF to add?

Doesn’t necessarily have to be a Vanguard ETF but would be nice because there are no transaction fee.

Also...I am strongly considering investing about 15% to 20% of my 401K in the Small Dogs of the Dow. Would like opinions on this too.

Thank you!
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Old 12-02-2013, 10:29 AM   #2
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Welcome to the forum.
By 'small dogs of dow' are you referring to Alps SDOG? I've been watching it. Seems thinly traded, that's been my reason to stay away.

MRG
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Old 12-02-2013, 10:45 AM   #3
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Welcome to the forum.
By 'small dogs of dow' are you referring to Alps SDOG? I've been watching it. Seems thinly traded, that's been my reason to stay away.

MRG
No, I mean the actual 5 stocks. They always seem to do better (or worse) than average depending on the market. I bevieve that in the long run I would come out ahaid.
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Old 12-02-2013, 11:07 AM   #4
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I'd try to stay relatively close to your AA as a total portfolio, 401k and Roth together. VSS is a nice diversifier, but 8% should be plenty. I'd try something different that you can't get in your 401k, VNQ (REITS) is one I use, and the Roth would be a nice non-taxable place to put it. However it is highly volatile. VWO is OK for EM. Or try some US TSM to stay within your AA. Stick with the Vanguard ETF's for no commissions.
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Old 12-02-2013, 02:20 PM   #5
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I'd try to stay relatively close to your AA as a total portfolio, 401k and Roth together. VSS is a nice diversifier, but 8% should be plenty. I'd try something different that you can't get in your 401k, VNQ (REITS) is one I use, and the Roth would be a nice non-taxable place to put it. However it is highly volatile. VWO is OK for EM. Or try some US TSM to stay within your AA. Stick with the Vanguard ETF's for no commissions.

I don't understand a lot of this investing stuff like I would like too.
Why would VNQ be good in my Roth?
I see other Vanguard ETF's with a much better 1,3 5 year track record.
Can you explain this to me?
Thanks
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Old 12-02-2013, 04:02 PM   #6
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I don't understand a lot of this investing stuff like I would like too.
Why would VNQ be good in my Roth?
I see other Vanguard ETF's with a much better 1,3 5 year track record.
Can you explain this to me?
Thanks
VNQ is a REIT index. It will behave at least somewhat differently than other bonds/equities. It provides some diversification, which can smooth the volatility of your total portfolio without dragging down the investment returns (I hope). It should be easy to find better performing funds, but you don't want to load up on funds that all hold the same type of investments. For example, there's no need to have four S&P 500 or very similar funds. I've made about 300% over the last five years or so with VNQ, as it moved from about $19 to $60+ now, so it's not a boring fund. and should eventually keep pace with other good funds.

I try to look at 10 or 15 year performance when it's available, that starts getting long enough to see a business cycle. Over even five years, you'll see a lot of specialty funds dominating the top performing funds. Whatever the hot sector was over the last five years. Most likely, you don't want those funds because they may cool off in the future and underperform the general market. On the other hand, buying a fund that invests in a currently unloved sector can be a good way to boost future returns. Of course you don't want a bad fund, just one that invests in currently unloved stocks.

If you stick with low-cost index funds you eliminate some of this performance problem. If you stick with the widest diversified funds like Total Stock Market and Global Ex-US, you are well diversified. If you have everything covered and want to do a little more, then add in things like VSS and VNQ.
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Old 12-02-2013, 07:06 PM   #7
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VNQ is a REIT index. It will behave at least somewhat differently than other bonds/equities. It provides some diversification, which can smooth the volatility of your total portfolio without dragging down the investment returns (I hope). It should be easy to find better performing funds, but you don't want to load up on funds that all hold the same type of investments. For example, there's no need to have four S&P 500 or very similar funds. I've made about 300% over the last five years or so with VNQ, as it moved from about $19 to $60+ now, so it's not a boring fund. and should eventually keep pace with other good funds.

I try to look at 10 or 15 year performance when it's available, that starts getting long enough to see a business cycle. Over even five years, you'll see a lot of specialty funds dominating the top performing funds. Whatever the hot sector was over the last five years. Most likely, you don't want those funds because they may cool off in the future and underperform the general market. On the other hand, buying a fund that invests in a currently unloved sector can be a good way to boost future returns. Of course you don't want a bad fund, just one that invests in currently unloved stocks.

If you stick with low-cost index funds you eliminate some of this performance problem. If you stick with the widest diversified funds like Total Stock Market and Global Ex-US, you are well diversified. If you have everything covered and want to do a little more, then add in things like VSS and VNQ.
I know O isn't an EFT but what do you think about O?
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Old 12-02-2013, 09:47 PM   #8
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I know O isn't an EFT but what do you think about O?
Never looked at it.
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Old 12-07-2013, 10:01 PM   #9
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I have been looking at O these last few days, I am impressed with its performance vs TPINX on the 3,5,10 year charts in morningstar. including dividens it has been very stable and steady returns, except these last few months since falling from 55. I read they have long term tenants, solid dividends. I am looking to enter when I see signs of upturn in the slow stochastic charts. clearly has a following on morningstar divdend forum.
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Old 12-08-2013, 02:17 PM   #10
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I like O too.
What's your opinion on the ETF's FPX and CXP...Anyone?
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Old 12-09-2013, 07:36 AM   #11
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Originally Posted by perrytime View Post
I have been looking at O these last few days, I am impressed with its performance vs TPINX on the 3,5,10 year charts in morningstar. including dividens it has been very stable and steady returns, except these last few months since falling from 55. I read they have long term tenants, solid dividends. I am looking to enter when I see signs of upturn in the slow stochastic charts. clearly has a following on morningstar divdend forum.
O is a favorite of many investors. The price now is much lower, but could drop another leg. The dividends are monthly.
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