Roth Investment Outside TSP

[Daisy]

I have been reading up on investments and also reading the posts here on this wonderful forum. My question is I am currently maxing out my TSP and started a Roth IRA with Vanguard. I am investing the max 5,000 in the Total Stock Market Index Fund with Vanguard as a Roth IRA. My question is since I am already in the stock market with TSP Funds should i change my Roth and do another type of fund such as a REIT or commodities index, to diversify? I am also not sure what other index funds at Vanguard I should invest in so any recomendations would be appreciated.

 

[Birchtree]

I'd concentrate on dollar cost averaging your Vanguard fund to the upside for the next ten years - then you can diversify into a foreign fund option. It takes a long time to build a base in a Roth because of the limitations but eventually you'll arrive - in the meantime keep on with the good investing.

 

[Daisy]

Hi Birchtree, Your right it is taking awile to see the money build up in the Roth. When you say "concentrate on dollar cost averaging your vanguard fund", Currently I am putting in the same amount of money every month. I could do it quarterly but right now I have it going in direct deposit on a monthly basis.

I do have 20% of my money in the "I" find in the TSP. I was thinking I should branch out with the Roth into something else to increase my returns.

 

[Bullitt]

Generally your asset allocation should include all accounts. Using a Roth IRA to buy REIT's or commodity ETF's is not a bad idea.