re: Should I be "concerned" about my Roth IRA? - update page 2

I moved my wife from EJ to Vanguard. Set up an acct and call Vanguard. They will pretty much take care of the transfer for you other than a couple signatures on your end.

VTSMX comprises about 65% of the 2045 target retirement fund. The 2045 is a fund of funds that adjusts the stock/bond mix with your age. The percentages of bonds increase the older you get. It's a true "set it and forget it" kind of fund.

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I moved my wife from EJ to Vanguard. Set up an acct and call Vanguard. They will pretty much take care of the transfer for you

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VTSMX comprises about 65% of the 2045 target retirement fund. The 2045 is a fund of funds that adjusts the stock/bond mix with your age. The percentages of bonds increase the older you get. It's a true "set it and forget it" kind of fund.

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Perfect. Thanks for the help guys.

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VTSMX comprises about 65% of the 2045 target retirement fund. The 2045 is a fund of funds that adjusts the stock/bond mix with your age. The percentages of bonds increase the older you get. It's a true "set it and forget it" kind of fund.

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I actually hold both in my portfolio (it was one of my "rookie moves" ) and VTIVX has returned 10.67% over 13 months while VTSMX has returned 13.53%, so they're pretty close right now.

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Is opening the VTSMX different than opening a target date fund? Or, if I open a target date fund will I be able to select VTSMX?

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VTSMX is 1 fund

The target date funds will invest in 4 Vanguard funds, like VTSMX, and will change allocations the closer you get to retirement automatically

for instance, the 2050 target date fund is 59.2% invested in VTSMX, 30.7% VTISX, and so on

but if you wanted to, you could invest your roth IRA 75% into the target fund and 25% into VTSMX, or whatever percentages you wanted to

If you want to keep a consistent portfolio, and want to specify the % into VTSMX for example, look at Vanguard's LifeStrategy funds. There are 4 to choose from depending on the allocation you want:

Growth 80% VTSMX/Total International
Moderate Growth 60%
Conservative Growth 40%
Income 20%

These funds are composed of the same index funds as the Target Date funds, they just don't change allocation % with time.

Not that anyone really cares, but just to update my situation. I called Vanguard and they got me going down the right track. I filled out the paperwork including my EJ stuff and mailed it off, and it said they should finish up the conversion into my new VG account in about 4 weeks.

I ended up going with the 2050 Target date fund. I just feel so down about the EJ thing...basically the last 2 years that I thought I was really getting ahead of the curve was a waste with nothing to show for it. I'm sort of in a "make up for lost time" mindset now, I think I'm going to double my monthly contributions from what I was doing just to try to make up some ground.

Also, even though I am a total beginner, this whole situation has kind of made me catch the bug! I've been reading some very elementary stuff about investing and I think I'm going to buy a few books on the subject as well. From everything I've seen so far, Vanguard looks like just an incredible company compared to the rest, I hate that I waited this long to make the switch.

Anyways, just wanted to thank the board for giving me the proper nudge to finally make this move.

If it makes you feel any better, I was with EJ for about 6 1/2 years. I set up my accounts with Vanguard yesterday and put in the request for a transfer online on Vanguard's site. Guess who I got a phone call from this morning! It was almost like breaking up with a girl you've been in a long-term relationship that you decided just isn't gonna work out. He tried his sales pitch again to get me to reconsider.

I like the guy personally (he even tried to set me up with his daughter several years back ) but as I educated myself this past year or so I realized how much I was getting screwed by account fees, higher fund expense ratios, and most of all the damn front-load fees! But you live and you learn. And I'm in a better position today than where I was 6 1/2 years ago when I walked into his office.

Now that you're on the right track, just keep plowing away and you'll be an OT baller in no time.

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Not that anyone really cares, but just to update my situation. I called Vanguard and they got me going down the right track. I filled out the paperwork including my EJ stuff and mailed it off, and it said they should finish up the conversion into my new VG account in about 4 weeks. I ended up going with the 2050 Target date fund. I just feel so down about the EJ thing...basically the last 2 years that I thought I was really getting ahead of the curve was a waste with nothing to show for it. I'm sort of in a "make up for lost time" mindset now, I think I'm going to double my monthly contributions from what I was doing just to try to make up some ground. Also, even though I am a total beginner, this whole situation has kind of made me catch the bug! I've been reading some very elementary stuff about investing and I think I'm going to buy a few books on the subject as well. From everything I've seen so far, Vanguard looks like just an incredible company compared to the rest, I hate that I waited this long to make the switch. Anyways, just wanted to thank the board for giving me the proper nudge to finally make this move.

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For one, do NOT feel discouraged that you wasted two years away. You could have made more money...But who cares? You could have lost more too. You still have more than you started with and it's a learning experience in what we call life. I am making the same decisions/regrets on a daily basis just like you are and EVERYONE else on this board.

What you can control is taking action and putting your cash in something smart (index fund or life cycle fund). The important thing is taking action.

On a side note, I recall from one of my previous posts about Ramit Sethi that you responded and were familiar with his work. Why haven't you started with his book? I would encourage you to start with reading his book, it would help you I promise.

How about I PayPal you $10 and you buy/read his book by next week? If it sucks, we will call it even. If it helps you (which it will) shoot me the $10 bucks back and I've got Chipotle for lunch next Friday.

Just trying to help you brother.