1. Home
  2. Financial Planning
  3. Distributing IRA Money

Distributing IRA Money

We currently have $50,000 in our Vanguard IRAs, 100% of which is invested in the Vanguard S&P Index fund (VFINX). We are considering redistributing the money to have 80% in the Vanguard Total Market Index fund (VTSMX) and 20% in the Vanguard Total International Stock Index fund (VGTSX).

First, will this be a good distribution of our IRA money. Second, when moving this much money between funds, should we do it all at once or schedule it out over time? I don't believe we will be charged any fees by Vanguard for moving the money between funds.

Reply to
mattfeeney
Loading thread data ...

If you are considering VGTSX, you might also want to consider their brand new fund VFWIX, which includes Canada.

Reply to
Andrew Koenig

This is a good start. You can bump up the international even more. I've seen plenty of studies that show improved risk:reward ratios at

35%-50% international (variation is from the index used and the timeframe). My own target is to get to 50% US, 35% International Developed Markets, 15% Emerging Markets.

Personally, I think you should do it all at once. If you were going from a big lumpsum in cash or bonds, spreading it out over 2 or 3 years is a good idea in order to sleep good at night. But the S&P500 is at pretty lofty heights and moving away from 100% large caps asap is a good idea.

Reply to
wyu

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.