Diversification in roth

[haffey005]

Hi another question! My husband and I both work for the postal service-and we are now putting in just the matching amount in our tsps. What I want to know is if we both have to be diversified in our roths. For example we both want index funds-so if I have lets say, a small cap and emerging markets in my roth and my husband does total stock market and a reit in his, is this still considered being diversified or do the four funds have to be in each of our individual roths? Thanks so much-I really appreciate you help!!!

 

[tsptalk]

As long as one of you doesn't mind when the other's account is beating theirs, it shouldn't matter.

If you want your accounts to always be equal, choose the latter.

 

[Birchtree]

May I suggest that you add individual stocks to your Roth. Pick a few companies that you are familiar with initially and be sure they pay a dividend. All dividends are usually reinvested for free in these types of programs - that means on automatic pilot you will continue to invest every three months regardless of any outside situations. Forget index funds, they only pay once/year. You have great flexibility in a Roth from borrowing tax free to no requirement for required distributions after 70 or so - they make great legacy pass throughs to the next generation - free income my friends.