Moving Roth money from m-market into mutual funds

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sandybeth 18 years ago

We have Roths with Vanguard. When I added our $5000 each for 07, I put it all into the Vanguard prime money market because I was waiting for market to fall. So now I'm ready to move it into the mutual funds--or should I wait? I'm thinking of an index fund, such as the total stock market index. Or is it better right now to go with a global fund or index? We already have mid-cap, emerging markets and equity funds in our portfolios. I know this may be more of a question for the stock board or mutual fund boards, but I'm hoping it is general enough for this site.

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J

joetaxpayer 18 years ago

it's an asset allocation question, not a problem to discuss here. You might want to offer your current mix by percentage. From what you posted, you seem light on a good overseas mix. As far as market timing goes, no one can tell you whether we will up or down in the next few months or year. JOE

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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D

Douglas Johnson 18 years ago

Seems to me that you have three choices:

1) You can stay in cash until the market hits a bottom and you can buy at the optimum time. Since I don't know anyone that can do that, this is probably not a good choice.

2) You can dump it all into the market now. Assuming this is long term money, this has the best long term returns. But you have to be able to close your eyes and ignore the ups and downs we have ahead.

3) You can dollar-cost-average. Put 1/12 of your cash into the market each month. On up months, you can look at your statement and smile that you've made money. On down months, you can look at your statement and smile that you've bought some more at a bargain price.

-- Doug

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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Moving Roth money from m-market into mutual funds

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