Retirement questions. TRowePrice Roth IRA?

Question

I am 28 y/o. I currently put away 150 dollars a month into a roth ira i have with troweprice. I have three mutual funds. Each one gets 50 dollars a month. I have Capital Appreciation/ Equity Income and New Horizons all through trowe price. I am trying to save for retirment. Any info would be appreciated on this. Am i doing this right? Should i have more funds or less? Like i said any info on this would be very helpful.

Answer 1

Starting early with monthly additions is certainly doing it right!

If I looked up the correct funds, your first two are Large Cap Value funds and the third fund is Small Cap Growth.  You might want to try and International Fund (T. Rowe Price International Eq Index (PIEQX) or T. Rowe Price Emerging Markets Stock (PRMSX)as an alternative to one of the first two. PIEQX probably has a lower cost as it is an index fund.

Go for no load, and lowest expense.

Equity Income has not been as good a performer.

I think you need exposure to the rest of the world.  The US is not the only market.

Continue to read, research and learn.  There are a million ways to do things an you will have to find the one that let's you sleep well at night.

READ:  The Bogleheads' Guide to Investing: Taylor Larimore, Mel Lindauer, Michael LeBoeuf, John C. Bogle

Check out "Planning and Education" tab at http://www.vangjuard.com

Don't be discouraged by ups and downs;  the long term trend is up.

Good Luck

Answer 2

Congrats!! yes u are....with the exception of using trowe....try zecco instead, free roth iras and no fees!!

http://friends.zecco.com/r/404dce3a71db1...

Answer 3

T. Rowe Price is a great Mutual Fund Company.  Your funds are good choices. The only major thing you're missing is international exposure.

Take a look at The Dodge & Cox international Fund. It will serve you well.

As per other suggestions;

Zecco is a mediocre broker. If you're looking for a broker, use Schwab or Fidelity (good for newbe's).

Answer 4

For exposure to international stocks and small cap value (the highest return style of morningstars 9 style box), bonds plus the large cap value and small cap growth you have, why not make it easy with one fund, the T. Rowe Price Retirement XXXX fund (XXXX being the year closest to the year when you might need the money).  It contains the whole world.  Later, when you have more money, you can "tweak" it by adding stocks or funds from the style or sector you favor.

Answer 5

"john carlo"s advice is sound.

Answer 6

go with the roth ira