26 yr old requesting guidance from "seasoned" investors and successful professionals
Hello, I am a 26 yr old college graduate (Go Navy, Beat Army), and currently about half way done with my MBA. I am married and have one child, though we are planning on one or two more sometime in the future. I plan on working for 30 more years, and hope to retire by 55. Currently single income, in the 70-80k range. We try to save about 20% of our income (10% long term in a TSP, 5% in a 529, and 5% to actively trade and "emergency fund" liquid saving).
My question lies with long term investing; should I cash out of the five mutual funds I currently own (lrg growth, value, intl, sml cap, fixed income) and buy low cost index funds (40% lrg cap, 20% intl, 20% sml cap) or would I be better off keeping them and see where they go? All the fees, expenses and taxes due to turnover rate in traditional mutual funds seem to water down the actual return. I read an interesting book about indexing and have since become skeptical of the traditional fund method and index method at the same time. If anyone has any comments on indexing, or investing/long term planning for a fairly young and ambitious guy, they will be well received.
Thanks for reading, and I look forward to hearing from you!
Hello, I am a 26 yr old college graduate (Go Navy, Beat Army), and currently about half way done with my MBA. I am married and have one child, though we are planning on one or two more sometime in the future. I plan on working for 30 more years, and hope to retire by 55. Currently single income, in the 70-80k range. We try to save about 20% of our income (10% long term in a TSP, 5% in a 529, and 5% to actively trade and "emergency fund" liquid saving).
My question lies with long term investing; should I cash out of the five mutual funds I currently own (lrg growth, value, intl, sml cap, fixed income) and buy low cost index funds (40% lrg cap, 20% intl, 20% sml cap) or would I be better off keeping them and see where they go? All the fees, expenses and taxes due to turnover rate in traditional mutual funds seem to water down the actual return. I read an interesting book about indexing and have since become skeptical of the traditional fund method and index method at the same time. If anyone has any comments on indexing, or investing/long term planning for a fairly young and ambitious guy, they will be well received.
Thanks for reading, and I look forward to hearing from you!