AboutWarren Boroson Expertise 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.
Experience 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.
Expert: Warren Boroson Date: 10/14/2006 Subject: All in??
Question Hi,
Quick background of my financial situation
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I am 31. I have around $50 k in my Roth-IRA, all of which is invested in TRRKX. I have another $100 k, $80 k of which I intend to invest in MFs. Currently it is languishing in ING Direct Money Market. I do intend to do some research to learn more about MFs and the right choices, but am losing time as I do that.
My Questions
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Q1. I subscribed to Morningstar FundInvestor intending to use the Aggresive model therein to model my portfolio. But the funds are not in any single Fund Company. I do not want to have an account in 3-4 different MF companies. How do I get the same/similar mix through a single fund company? How do most people who follow this magazine get invested in the model portfolios?
Q2. The market seems to be on a big uptick. Does it make sense to take all the cash and put it into the market right now; or should I phase it?
Your help/advice is much appreciated.
Thanks!
Musafir
Answer Dear Musafir:
1. If you set up an account with (say) Fidelity, Fidelity will buy all those funds for you, charging you $75 per fund. (Schwab, T. Rowe Price, and Vanguard will also, but their charges may differ.) One advantage: It makes things much simpler at tax time. The current issue of Kiplinger's recommends OptionsXpress, which is very inexpensive. $14.95 a transaction.
2. Phase it in. No one knows what time intervals are best, though. If you put money into a value fund, however, you can invest more quickly. The stocks in value funds are always suppsed to be cheap.
