Post by phunluvin82 on May 23, 2012 10:17:05 GMT -5
Can someone explain my investments to me like I'm 5? I'm clueless.
The bulk of my Vanguard Roth IRA is invested in VHCOX. I have a very small amount that is in a Money Market fund that was described to me as low-risk, low return and then I have a small amount in bonds...combined they're less than 9% of my money, with the rest being in VHCOX.
So, what I'm trying to figure out is...(A) is VHCOX a good investment? It seems like it's down right now, but historically I *think* it's done okay? I've tried to look at the returns on the statements and have poked around Morningstar, but honestly, it's like Greek to me....and (B) should I be further diversified, and if so, any recs as to in what? FYI, I'm 29.
Post by phunluvin82 on May 23, 2012 13:02:02 GMT -5
Thanks, I was thinking of putting some into a target date fund, but I was more trying to decipher whether VHCOX has had good returns in the past, and I just can't really figure out whether it has done better or worse than the market as a whole.
I know I should be able to figure at least that much out, but I seriously can't make heads or tails of all the numbers/data and what they mean.
VHCOX is probably not a good idea as a core fund. If you have one core fund, it should typically either be a Target Date Fund or a broad market index fund (my favorite is Vanguard Total Stock Market Index). As you learn more, you can branch out into other asset classes such as small cap value, real estate, International, etc.
Thanks, I was thinking of putting some into a target date fund, but I was more trying to decipher whether VHCOX has had good returns in the past, and I just can't really figure out whether it has done better or worse than the market as a whole.
I know I should be able to figure at least that much out, but I seriously can't make heads or tails of all the numbers/data and what they mean.
You can figure this out by comparing VHCOX to the returns of the S&P 500 over time. You can go into your Vanguard account and click compare and select the benchmark that you want to use. You can look at the 1,5, and 10 year performance. I find it helpful to look at the 10 year comparison chart.
Like others have mentioned if this is your only fund you need more diversification, even if this fund has done well.
Post by phunluvin82 on May 23, 2012 15:27:15 GMT -5
Thanks all, I'm going to look at the 10 year comp, but it sounds like either way, I need to start looking into some options for diversification. Thanks again!!