I'm investing $5,500 for 2017 and $4,500 for 2018. I do have emergency fund left over. I probably won't reinvest into this for at least a few years, but I wanted to put something in now. I chose Roth IRA because I have a low-paying job while in college, putting me at a low tax bracket. I chose Vanguard because of the low fees.
I'm debating with myself about how I want to allocate this. I've read the sidebar and seen the guideline about [my age]% as bonds, as well as 20% of stocks being international. I'm risk-averse so allocating 80% to stocks worries me, but I understand that I'm young and can take a hit, and I do trust the world's economies and that we'd survive any kind of recession... Or do I just select a target date fund set for my expected retirement date, and from my understanding it allocates appropriately for me?
I don't have much help with this as neither of my parents has an IRA, and so I'm second guessing myself and am kind of uncertain as I go through this process. Is there something else I should know?
Edit: I realized that I went through here when I was starting my process, to open the IRA. Should I instead be going through here to open a target date fund? Edit 1.5: First link! Thanks.
Edit2: Regarding my dividends and capital gains, should I reinvest those or transfer them to my money market settlement fund? Is there a difference? Edit 2.5: Chose to reinvest! Thanks.
Edit3: Now time to invest the $10,000 somewhere. If I select from a list of Vanguard's funds, and filter only for Target Retirement Funds, I believe that the two best options for me would be to invest in VTINX (Target Retirement Income) at an expense ratio of .13%, or VLXVX (Target Retirement 2065) at an expense ratio of .15%... Though I'm not sure the difference, or rather, which is best for me? I know that lower expense ratios are good, but 2065 hits the year that I would likely retire. Is it even the best option to choose from Vanguard's available Target Retirement Funds, or would something else better suit my goals?
Submitted March 06, 2018 at 11:54PM by mitchy1012 http://ift.tt/2oOfcDz
