My retirement contributions (403(b) and Roth) are maxed out (though I'm behind on retirement overall), my e-fund is substantial, and I have no debt other than a mortgage. I feel like it's time to think about investing my "extra" money. However, I'm a newbie to investing, am a bit risk averse, and would definitely miss that money if I lost it. On the other hand, it's not doing me much good sitting in my savings account.
I've been looking at three Vanguard funds: Total Stock Market (VTSMX), 500 Index Fund (VFINX), and a less risky LifeStrategy fund (VSCGX). All of these funds have a $3000 minimum, but the first two have Admiral shares available ($10,000 minimum) that have a much lower expense ratio. My question is: With an initial investment of $10k, do you think it makes more sense to spread the money evenly across the three funds and reduce my risk a bit, or does it make more sense to buy Admiral shares in one of the first two funds and pay lower fees (but run more risk)?
Also, these funds are very diversified. So I'd pick one and get admiral shares.
LifeStrategy should be a little lower risk but it depends on your timeline and goals since they include bonds. I'd go with TSM unless your timeline for spending the money is within the next few years.
Also, these funds are very diversified. So I'd pick one and get admiral shares.
LifeStrategy should be a little lower risk but it depends on your timeline and goals since they include bonds. I'd go with TSM unless your timeline for spending the money is within the next few years.
Thanks! My timeline is long. I'm looking at this as a way to supplement retirement investments.