So I was just messing around SCHWAB and found that a guy can go to RESEARCH -- Choose ETF's -- and then choose ETF PORTFOLIOS...


So after that they ask what kind of investor you are... Conservative etc. In a drop down menu ---- then you can put in the amount you'd like to invest... I put in 10,000 for playing around.

It then built and entire portfolio of ETF's by how much to put in each one etc.

The minimum was 5K total.


My point here is --- for retirement accounts -- or those guys just struggling to CHOOSE particular names etc ---- ETF's would be a good investment. They're basically baskets of stocks that make up a particular group -- say TECH --- OR Bonds -- or Industrial -- or Big Caps... They're commission free some of them and they're very liquid... and pretty damn stable if you have a diversified portfolio of them. Which is exactly what this little "builder tool" does for you.

Pretty smart -- and pretty easy for those just starting out I think.

So I setup my work 401k and did it as follows.

Traditional IRA

• 60% Target Retirement 2045 Trust I
• 20% T. Rowe Price Personal Strategy Growth Fund (MUTF:TRSGX)
• 20% Vanguard Balanced Index Fund Institutional Shares(MUTF:VBAIX)

Our accountant advised that I leave my current Roth as it's own account and don't merge it with any others.

So on top of this IRA as soon as my school debt is paid off - I need to check my interest rates to see if I should even pay lump sums based on how high they are- I'll start investing a decent amount. Hopefully the money will work for me while we save to build another house and we won't have to just flat out save it all!

**Just checked, student loans are at 6.8%**

After looking further into the funds in each, it seems that the Targeted fund has a lot of Vanguard Index funds in it. I might be doubling up to much :twak:

Target 2045 Fund:
Percentage Fund Percentage
1 Vanguard Total Stock Market Index Fund 63.1%
2 Vanguard Total International Stock Index Fund 26.9%
3 Vanguard Total Bond Market II Index Fund** 8.0%
4 Vanguard Total International Bond Index Fund Institutional Shares 2.0%
Total — 100.0%

See --- you're LEARNING.... and that's what I love to see!! I don't care what you guys end up doing --- as long as you're engaged and THINKING and LOOKING...

It doesn't take a whole lot of work -- and as you understand it a little more -- actually becomes kind of fun.

Oh it's fun, I know this. I almost did it for a living, or wanted to in school. But then I realized what most people end up doing. I wanted to help people, not push papers for accounting.

Ugh, Problem is there are not a ton of options on this Vanguard site for my choices for the IRA. Guessing it has a lot to do with my 'independence' through work. But I feel that fund is going to end up doing some double dipping of stocks which isn't ideal.

That's not really high rate debt --- so what you have to gauge -- is if you INVEST -- what is your TOTAL RETURN going to look like -- vs -- just paying down the debt and maybe adding some to the principal from time to time as you can.


At 6.8% --- I'd lean toward trying to get total return on my investments. Now if it was above 10% then I'd pay it off asap.

Pick me pick me!!! :y0!:

So would a mutual fund like this pay dividends? Seeing as how the stocks IN the fund pay dividends, would you get them seeing as how it's inside a 'mutual fund'?

Vanguard Dividend Growth Fund (VDIGX)

Yes -- that's it's primary function... "current dividend income".


So to me - that would be a better investment choice for someone already retired.
If you have TIME on your side -- then you'd be better off with something that will give you growth. In looking at it -- it's growth isn't BAD... given
that it's stated objective is dividend growth not capital growth... So IF YOU CAN CHOOSE TO RE-INVEST THE DIVIDEND having that dividend buy
you more shares.


Here's what THEY say is the funds objective.




The investment seeks to provide, primarily, a growing stream of income over time and, secondarily, long-term capital appreciation and current income. The fund invests primarily in stocks that tend to offer current dividends. It focuses on high-quality companies that have prospects for long-term total returns as a result of their ability to grow earnings and their willingness to increase dividends over time. These stocks typically-but not always-will be large-cap, will be undervalued relative to the market, and will show potential for increasing dividends. The fund seeks to be diversified across industry sectors.


The funds top ten holdings:



McDonald's Corporation (MCD) 3.01%
Microsoft Corporation (MSFT) 2.83%
United Parcel Service Inc (UPS) Class B (UPS) 2.78%
Wal-Mart Stores Inc (WMT) 2.71%
International Business Machines Corp (IBM) 2.71%
Merck & Co Inc (MRK) 2.51%
Target Corp (TGT) 2.51%
Praxair, Inc. (PX) 2.50%
Roche Holding AG (RHHVF) 2.46%
Johnson & Johnson (JNJ) 2.44%

You can also do regular mutual funds too if you select "all in one solutions" I punched in 250K - It picked 4 ETF funds and then did the same amount with regular mutual funds (mostly schwab funds, low or no fees) and it picked 9 funds ..... I agree with you pretty interesting and maybe not a bad way to go.

Someone with 100K plus to invest -- or invested already -- should be picking their own stocks. With that kind of money you don't need the mediocrity that generally comes with Mutual Fund ownership. I was trying to find a way for guys just starting out -- with less than 50K to invest... which would allow them to get some diversification and have some immediate benefit (just being invested!)