JP & H (and Dad!):
I keep forgetting to tell you guys about the mutual fund into which I think JP and H should put (all) their Roth IRA holdings (and any other retirement monies).
It's the Vanguard Target Retirement 2045 Fund, which has a ticker symbol of: VTIVX.
Why? Here's the VTIVX investment strategy: The fund invests in other Vanguard mutual funds using an asset allocation strategy designed for investors planning to retire between 2043 and 2047. The fund’s asset allocation will become more conservative over time.

What's so good about this? Well, it's a Vanguard product, so its fees are very, very low. It's also 'fire-and-forget' - you guys can put your money in and not think about it for the next 40 years. Over time, the fund adjusts its holdings, and becomes much more conservative as retirement draws near.
What does VTIVX invest in?
- the total U.S. bond market
- the total U.S. stock market
- 3 types of international stock funds: European, Pacific and Emerging Markets.

You can't get much more diversified than that. Right now, the fund is light on bonds (10%) and heavy on stocks (72% U.S. stocks), including the international ones (11% European stocks; 5% Pacific stocks; 2% Emerging Market stocks). This means higher risk (and higher returns) right now. 35 years from now, the fund will hold mostly bonds - steady income and low risk.

And like I said, Vanguard does all the necessary adjusting over the years...

(FYI - I am following a similar strategy - I'm in eight different funds which together do close to the same thing, plus I have a REIT (real estate) fund. The real powerhouses right now are the international funds, especially Emerging Markets.)

Let me know what you think!
C
- posted by Christoph Roggenkamp @ 7/26/2006 04:50:00 PM