Hey PF
I began funding my Roth IRA in 2018 and was lucky enough to be able to max it out at $5500 and also save up for some 2019 investing. I am ready to deposit the max $6000 into my 2019 Roth IRA, but I am not sure what I should be buying.
The $5500 that I deposited for 2018 all went to VTTSX (Target Date 2060) because it was the easiest thing to do while I was learning about retirement and wanting to just get started, but I have been doing research on admiral shares such as VTSAX (Domestic Admiral Share) and VTIAX (International Admiral Share). From my understanding, you need to have at least $10,000 invested to purchase these shares, which leads me to my questions:
If I deposit $6,000 for the 2019 tax year, I will have a total of $11,500 deposited. Can I put that full $6,000 towards admiral stocks? Or can I only put the money deposited after 10k ($1,500 in this case) towards admiral stocks? Can I transfer the $5,500 I've already deposited last year to admiral stocks? Should I?
Since I'm fairly young (23) I think I want to go heavy into stocks and sort of hold off on bonds for now. From here on out, is investing 50% into VTSAX and 50% into VTIAX a good idea? Also, are VTSAX and VTIAX considered ETF's? Like, do I have to buy 1 full stock at a time, or can I put any odd amount of money towards it (like I did with the target retirement funds)? If they are ETF's, what do people normally do with the overflow when they can't afford a whole share? Or is that little amount of money just too insignificant to matter?
Thanks for reading and your time responding, this PF newbie really appreciates it!
Submitted March 05, 2019 at 09:08PM by PalmHacks https://ift.tt/2XGc3pi
