Tuesday, October 03, 2006
Wow, I actually transferred some money!
My retirement portfolio is about 75% invested in this one fund. Granted, it is a very broad fund, but it's up quite a lot now and I wanted to put some of the money into another sector. I don't mess around with my allocations too much anymore, although I used to, so I felt very brave transferring $1000 from my Equity Index (basically an S&P 500 fund) to a Growth fund. The Equity Index fund is currently pretty high and the Growth fund is priced pretty low, so I felt like I was getting some bang for my buck there. Also, I just don't like to see my entire portfolio's value tagged to whether that one fund gained 25 cents today or not. It's not true diversification as these are still pretty much all large-cap US stocks, but I'm somewhat limited in what types of things I can invest in, as TIAA-CREF only has about nine options. Still, I feel very brave for having actually moved some of that money.
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3 comments:
Did you know that the mutual fund's price itself (NAV) really means nothing? When fund A is $100 a share and fund B is $20 a share, it doesn't mean that fund B is priced low. More than likely fund A started a long time ago and had time to reach $100 and fund B was relatively newer.
No, I mean comparatively cheap.. the Equity Index fund has gone up about eight dollars from when I got in, and the Growth fund has gone down about five, I think. (Although I usually only pay attention to the Equity Index price.) So I think I'm selling high and buying low there. We'll see if that actually pays off in my portfolio...
You may want to try a mid-cap, or international fund for more diversification. My international fund has been getting 16% returns all years versus -2% for my growth fund.
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