Mutual Funds/vanguard VTSMX


Good morning,

I am presently retired with a stable income.  That said, I have a bit of extra cash not accruing any interest and am considering a Vanguard mutual fund…VTSMX.  My time horizon for this fund is 5-10 years…and I'm moderate to aggressive in terms of risk.

It will not be sheltered in any retirement tax deferred plan…and simply subject to taxes.

It is money I can afford to risk in the stock market which is why I'm leaning toward the total market index versus a SP500 Index fund.

Any thoughts whatsoever will be appreciated.

Thank you,


My only thought is that if you have a lot of money to spare, you spring for more than one fund. Just to make things more interesting--and to diversify more. An emerging markets fund...a fixed-income fund... whatever.

The fund you have in mind has over 3,000 U.S. stocks and gets four stars from M*. With your 5-10 year time horizon, your money seems safe enough. Unless the bottom drops out of the market at the last minute....

Good luck!


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Warren Boroson


Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.


Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.

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