joshbilsky@[EMAIL PROTECTED]
wrote:
> Last year I opened a Roth IRA and contributed the maximum 4k amount
> for both 2006 and 2007. Since I just started the account, I just
> stuck to the Vanguard STAR fund (VGSTX). This fund seemed like a good
> start since it is a "fund of funds". I was wondering though, if I
> should consider adding another fund to my portfolio or just continue
> to buy more shares of VGSTX. Any recommendations on other Vanguard
> funds that might be a good addition to what I have now?
I'd echo John's remark about a foreign fund being the next one to add.
In the long run, it will lower volatility and help average return.
I'd ask - do you have a 401(k)? If so, that's part of your asset
allocation, and can't be ignored when asking your question about mix and
new funds.
Regarding the choice of Roth vs pretax IRA, what is your current tax
bracket? You can (currently) retire with $850K and still be in the 10%
marginal bracket, so the choice between pre and post tax IRA is not so
clear cut. (see http://www.joetaxpayer.com/toomuch.html
) for a longer
explanation of my thoughts on that, if you wish.
Joe
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