Investing in mutual funds

[NinjaPigeon]

So I've been thinking of investing in some mutual funds with Vanguard. However, I'm not really sure of the best way to start out, as this page makes it sound like there are a lot of fees for starting small.

I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees? I'd like to diversify more, but it looks like the most I could diversify would only be three funds ($3k min per fund), and that still isn't very diversified. Does anyone have any suggestions? I don't think I can achieve anything near what Spanky mentioned below, but I'd like to do more than just leaving my money with ED.

TIA,
NP


Spanky said:

A 60/40 slice and dice portfolio would return 8.01% YTD.


% of asset YTD Adjusted
Vanguard Value Index (VIVAX) 12.00 8.41 1.01
Vanguard 500 Index (VFINX) 12.00 6.40 0.77
Vanguard Small Cap Index (NAESX) 6.00 8.73 0.52
Vanguard Small Cap Value (VISVX) 6.00 7.25 0.44
Vanguard REIT Index (VGSIX) 6.00 12.78 0.77
Vanguard International Value (VTRIX) 6.00 18.47 1.11
Vanguard International Growth (VWIGX) 6.00 15.32 0.92
Vanguard Emerging Markets Stock (VEIEX) 6.00 31.20 1.87

Vanguard Short-term Bond Index (VBISX) 10.00 1.21 0.12
Vanguard Short-term Federal (VSGBX) 10.00 1.61 0.16
Vanguard Intermediate-Term Bond Index 10.00 1.34 0.13
Vanguard Intermediate Treasury (VFITX) 10.00 1.95 0.20
8.01%

 

[REWahoo]

I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees?

You might consider investing it in either the Star fund (VGSTX) or one of the Target Retirement funds (VTTVX, etc.). This could get you the diversification you want and help avoid those fees.

 

[NinjaPigeon]

Oh, I forgot to mention I already have my Roth IRA through Vanguard and invested in their 2045 fund. So I'd like to not put all my eggs in one basket (or fund as it were!). I will check out VGSTX though.

 

[73ss454]

Oh, I forgot to mention I already have my Roth IRA through Vanguard and invested in their 2045 fund. So I'd like to not put all my eggs in one basket (or fund as it were!). I will check out VGSTX though. 

You might want to consider a few books.
Work Less, Live More by Bob Claytt

Also, Bogleheads guide to investing.

 

[LOL!]

I only have $10k to invest, so should I only put it into one fund to avoid the maintenance and low balance fees?

Sounds like you want to get to the destination without making the trip.

Yes, put it into one, two or three funds. Don't worry about being totally diversified at the beginning of your journey. Each fund has plenty of diversification by itself. Save more money, invest into another fund when you get more assets.

Example: Invest in a large cap value index, a small cap index, an international index to start with.

 

[unclemick]

Hmmm

If you are already invested in VG 2045 - why not put the rest in 2045. Just because some is Roth and some is taxible is no big deal.

It only takes one fund.

Unless you are full time in the investment business.

heh heh heh heh

Don't confuse hormones with investing - it ain't that complicated.

Of course,I never follow my own advice - at age 62 - it's probably too late to give up my drug of choice - Norwegian widow DRIP stocks - but I'm working on it.

At 12 years into ER - the real deal is VG Lifestrategy(a forerunner to Target Ret. Series) - led sled dog plus small defined pension plus SS next month.

If you are really really bored - read books on investing, kayak, fish, golf, or or - there is always the vast range of real estate - to immerse yourself.

Just don't confuse it with retirement funding.

Heh heh heh heh

Edited - changed 'investing' to retirement funding. I confuse myself often.