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AR15.COM
3/14/2011 12:31:41 PM EDT
I have been reading "The Four Pillars to Investing" and have a few questions.

Is there a penalty assessed for shuffling around funds inside of a Vanguard Roth IRA to re-balance my portfolio?  Currently my Roth has two funds, an international total index fund and the Star fund.  If I wanted to add a S&P 500 index (VFINX) could I then reduce some of my Star fund to increase the S&P 500 fund?  I am still researching to see if there are any costs (or more important any penalties) for doing so.

I have only had this Roth for about five years now and never had any real plan, this book has been a big help.  Currently I am thinking of adding the S&P 500 index, a small value index, and an emerging markets index fund to the mix.  With interest rates low right now, would it be better to wait before adding a short term bond fund?  My portfolio would be around 20% bond allocation so that is a bit hot on the stock side.  Any suggestions or areas that I should research some more?
3/15/2011 5:53:38 AM EDT
[#1]
Call Vanguard and ask their opinion.
3/20/2011 12:36:30 PM EDT
[#2]
I would go with their LIFE STRATEGY (MOD) or GROWTH fund. It has what you are looking for and will be cheap. It invests in 5 different funds.

You should also consider their TARGET RETIREMENT.