How does my roth IRA portfolio look?

Question

Is my portfolio correctly diversified.. I am currently 22 so I am going for mostly large growth right now. I have 4 mutual funds in my portfolio: PRWAX(35%) PRMSX(35%) PRHSX(20%) PRNHX(10%).

Answer 1

Well, "correctly" is a subjective term.  Portfolio allocation is as much art as it is science.

That said, you currently have very good diversification, and T. Rowe Price is an excellent fund company (I have my Roth with them as well).

One fund you may want to consider adding is the T. Rowe Price Real Estate fund (TRREX).  Real estate traditionally has a low correlation with the stock market, which makes it a good diversification tool, and it kicks off a healthy amount of income (great for a Roth fund, since you won't have to pay any tax on this income).  Also, real estate has been hammered recently, so shares are cheap now.

Also, be sure to add regularly to your account (automatic monthly investments are the best way to go) - you'll be amazed at how quickly it adds up.

You're only 22 - great job on getting an early jump on retirement.  Your Future Self will thank you!

Answer 2

Not bad.  

Good job for putting your money in Roth IRA instead of traditional IRA.

Here is the link to the Money Magazine's list of best mutual fund.  http://money.cnn.com/magazines/moneymag/...

Best wishes.