Investments Update: Getting My Feet Wet

Okay.  Took off the training wheels today…well maybe just one of them.  I finally settled on a 80/20 asset allocation, and while I’m not done with the process yet, I took a major step today.  You see, I am afflicted with what’s known as analysis paralysis — for good reason.  Today I took care of the bond part by purchasing some Vanguard Total Bond Market ETF (BND) and iShares Barclays TIPS Bond Fund (TIP) in my Roth IRA (and incurring $28 in fees in the process) and reallocating some of my 401(k) to also include PIMCO Total Return Instl (PTTRX).  The expense ratio on PTTRX are higher than BND, but it’s all I have to work with.  Now I have cash in my non-retirement accounts, equities and bonds in my 401(k) and bonds in my Roth IRA.

So now I have to figure out how to purchase equities with my cash.  I decided to use WellsTrade as my broker today.  I was originally using TDAmeritrade, but was put off by the $10/trade fees.  With WellsTrade, I can trade 100 times a year with no fees and $5.95/trade after that.  I highly doubt I will trade twice a week.  Although, I may trade a little more than normal because WellsTrade does not have dividend reinvestment.  All in all, this deal saves me a boatload of money!

Now I’m almost ready to go.  Let’s see some major market action so I can get my hands dirty!

4 thoughts on “Investments Update: Getting My Feet Wet

  1. Found your blog from ERE… I stand with you on convictions on the current market… I frequently comment on the market over at my blog

    Look forward to reading more here at your blog!

  2. A great way to get your feet wet but still not miss out on opportunity is just to start out with half-positions or one-third positions. It sounds like you’re not completely new to investing, but it could still help ease you into the market as you keep learning about what asset allocation you’ll eventually want, etc.

    • Thanks for the suggestion! I feel torn between wanting to get out of my paralysis and wanting to make sure I’m not buying into a market that will blow up in a few months!

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