Quick question everyone. I'm new to investing and opened a roth IRA. When looking into peoples portfolio ideas it seems many people have certain percent allocations to certain mutual/index funds. My question is how do they achieve these percentages? For one, the minimums are all like $3000. If the max contribution is $6,000 per year, even if you had 4 different sources it would take two years to buy into those 4 funds, and they would all be equal shares at 25%. I'm just a little confused how people have portfolios of 40/30/10/10/5/5 or whatever if this is the case. It seems like it would take 10-15 years just to build your ideal setup.
Another noob question. If your goal is to not withdraw any funds how do these stay consistent with fluctuations in the market? You just buy more into a given stock when it goes up/down in order to maintain the portfolio? Seems like a lot of work for something that I figured was supposed to be passive.
Thanks for your answers ahead of time. I just bought my first fund with $3000 and just not sure what do do with additional money I add in until I get another $3,000.
Submitted April 27, 2019 at 12:45AM by Gastrorrhexis http://bit.ly/2ZD309K
