Allocation and Index funds?
Aloha once again!
Quick Stats: $500k to invest, currently 100% in a money market fund. 29yrs old, want to retire at age 35.
I have decided I'm comfortable with 70% in stocks and 30% in bonds. I want to keep my investing really really easy, just a handful of holdings, re-balance my portfolio twice a year, after any big bumps.
What that info, do I dare go jump in with just index funds? It seems like the low cost and returns from these two index funds meet my goals; Is there a risk that I am over looking of having just two index funds? One other thing I'm not sure about are tax issues, any tax issues I need to know about when holding index funds? Here are the funds I'm looking at currently:
60% in FSTMX
10% in FSIIX
As for bonds, both of these come highly recommended from Fool.com:
20% in MBDFX
10% in AGG
What do you think? I'm happy with my 5% MM fund until I figure out where exactly I want to go with this...