Distributing IRA Money

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Distributing IRA Money mattfeeney 03-20-2007  Re: Distributing IRA Money Andrew Koenig 03-20-2007  Re: Distributing IRA Money wyu 03-21-2007
Posted by on March 20, 2007, 4:22 pm 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. Posted by Andrew Koenig on March 20, 2007, 7:01 pm > 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). If you are considering VGTSX, you might also want to consider their brand new fund VFWIX, which includes Canada. Posted by on March 21, 2007, 1:35 pm On Mar 20, 12:22 pm, mattfee...@gmail.com wrote: > 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). 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. > 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. 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. Similar Threads Posted Distributing Estate September 10, 2007, 12:52 pm Where to put money March 8, 2007, 12:54 pm Should I put my money in mortgage? December 28, 2006, 8:38 am MS Money & Quicken January 24, 2007, 11:17 am Came into a little money, need advice May 28, 2007, 7:01 pm So how will the extra money help? August 12, 2007, 9:59 am I'm pulling my money.. November 13, 2007, 2:16 pm More money, more problems November 25, 2007, 7:10 pm where to put money that isn't a bubble October 1, 2008, 4:18 am Money Market Funds October 7, 2006, 8:29 pm