| Fund I can no longer contribute to: sell some or hold all? |
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pat2013
New Member
Cash: $ 0.65
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Joined: 09 May 2013
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| Fund I can no longer contribute to: sell some or hold all? |
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My question is about retirement investments, which are in a 403(b) and IRAs (mostly Roth). Last year, my employer changed the company that manages my (self-directed) 403(b) retirement funds. After this change, I was able to move directly across my Vanguard PRIMECAP funds (which have been closed to new investors for some time) into the new system, however I was no longer able to contribute to this fund.
Vanguard PRIMECAP: "Multi-cap growth equity, emphasizing large- and mid-cap issues. Seeks long-term capital appreciation. Invests in out-of-favor growth companies at attractive valuations. Expense ratio as of 01/28/2013 - 0.45% "This is 64% lower than the average expense ratio of funds with similar holdings."
1 year 3 year 5 year 10 year SInce inception
PRIMECAP Fund Investor 23.76% 12.89% 6.78% 10.87% 13.34%
S&P 500 Index* 16.89% 12.80% 5.21% 7.88% 10.95%
It, along with the DJIA, has improved greatly since 2008. It represents 59% of my total retirement investments. I am approximately 9 years from retirement. My portfolio is weighted heavy in terms of aggressiveness, based on the typical mix used in target investment funds for my age.
MY QUESTION: Given that I cannot invest any more in this fund (which also means I am not doing dollar-cost averaging) are there any general investment best-practices related to holding onto, or selling some of the shares in such a fund, to balance my portfolio? Or is it completely a matter of looking at all my investments, my situation, how much risk I'm willing to take, market/economy analysis, etc., in terms of making such a decision?
My portfolio looks like this:
Bonds: 11%
Cash money market: 4.5%
Growth: 64%
Growth/income: 4%
International: 2.5%
Sector and industry funds: 8.2%
Target retirement: 6% (and growing, as I'm continuing to contribute to that, to slowly balance my investments).
Thank you.
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Thu May 09, 2013 5:34 am |
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pat2013
New Member
Cash: $ 0.65
Posts: 3
Joined: 09 May 2013
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Tim,
Thank you very much for that; it is very helpful!
Tim and/or anyone: I included a lot about the specifics of my situation, because I figured that would be useful for responses. I'm also trying to find out if moving some funds out of a fund (like Vanguard PRIMECAP) into some other investment (to rebalance, assuming that made sense) would be considered unwise, given that I can no longer contribute to it -- or if that fact really shouldn't be much of a factor in my overall strategy. thanks
Pat
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Sun May 12, 2013 4:14 pm |
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pat2013
New Member
Cash: $ 0.65
Posts: 3
Joined: 09 May 2013
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Thank you; that is what I was trying to figure out!
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Mon May 13, 2013 1:28 am |
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