For high risk investments I buy:
FSTMX - SPRTN TOTAL MKT INDX INVESTOR CLASS
and for lower risk I buy:
BND - VANGUARD TTL BD MKT
Any suggestions for something in between these two risks profiles?
The medium risk investment would be for my traditional IRA. I am
looking to invest around $5k/year .
I have around $100k invested in Spartan which is just my spare money.
And I have $30k invested in Vanguard Bond that is part of a SEP IRA.
I wouldn't exactly call this a high risk investment. More like medium-
high. Small cap stocks and international stocks... those are high
Similarly, while this is certainly a lower risk investment, I wouldn't
call it low risk. For really low risk, you should go with treasuries
or short term bonds.
The obvious choice is a balanced index fund like VBINX. But that's
pretty much the same as buying 60% of FSTMX and 40% BND. Another good
choice is a long-term bond fund like VBLTX.
If you are all in tax-advantaged accounts, then a target retirement fund can
be an option. Vanguard has a number of low-cost ones. You get more choice as
to the allocation than a balanced fund. If you have a portfolio that spans
both taxable and tax-advantaged, then it's likely that individual funds will
be the way to go, to make sure the correct account type is used for each
Homer Simpson writes:
The $75 is very high. Presumably, that's because you are
buying it within a Fidelity brokerage account.
You can buy the same fund directly at Vanguard with no
transaction cost at all.
The expense ratio is very reasonable.
You could replicate it pretty closely by using no-transaction-cost
iShares ETFs at Fidelity, too. Put 60% into IWV and 40% into AGG
and rebalance periodically. (It's not exactly the same - VBINX's
stock portion is Vanguard's total stock index, which tracks
the MSCI US Broad Mkt Index which isn't precisely the same thing
as the Russell 3000 which IWV tracks. I actaully like the Vanguard
index better, and you could actually use VTI, Vanguard's ETF
version of it instead of IWV, but then you'll pay transaction
costs, now $8/trade at Fidelity).
Expenses via the ETFs are actually lower than the expense
ratios via VBINX (and the Vanguard ETFs, VTI and BND, have
lower ERs than do the iShares ETFs - in the long run that may
be worth paying the transaction fees to get)
Homer Simpson writes:
It's a pretty good one-stop-shopping fund, but it's a bit more
risky and aggressive than VBINX. It's only got 15% in bonds,
and it's also got a big chunk of international exposure. Not
surprisingly, it's got a slightly lower std-dev than FSTMX,
and a significantly higher one than VBINX. (trailing 3-yr,
Note, too that FFNOX has a $10000 min. If your balance
goes below that, even if it's because the market dropped
rather than because of sales you make, you may get hit
with a $10/yr fee. (Same as they do with all Spartan funds)