Last year I put my Roth contribution in a Fidelity sector fund concentrating on banking and investing (Fidelity Select Financial, FIDSX). It did pretty well and after it went up 20% I exchanged it for a high-yield bond fund in September (FAGIX). I wanted something more conservative than equities which had gone up a good bit, and it seemed like there was still a lot of turmoil ahead relating to the fiscal cliff. However, I think FIDSX ended up a little ahead of where I sold it.<\/p>\n
For 2013, I realized that I could put the entire contribution in an existing Roth fund I already have, Vanguard’s Small Cap Value (VISVX), and that would get that balance up high enough to upgrade to Vanguard’s “Admiral shares” which have a lower expense ratio. It isn’t a huge difference, 0.24% for VISVX and 0.10% for the admiral shares (VSIAX), but why not? It’s half the cost.<\/p>\n
To fund it, I figured I would sell some emerging market shares (VEMAX) I have that have gone up 20% since I bought them and then buy the rest of the $5,500 maximum allowable contribution with some short-term bond fund shares.<\/p>\n
Not real exciting, but I do think small caps will continue to do well this upcoming year. Now that I’ve paid off my mortgage, I also went ahead and maxed out my deferred compensation contributions for 2013 and opened a 401k, which seems like double-dipping, but you are allowed to do both. I may have bit off too much by adding the 401k, but I can reduce it later.<\/p>\n","protected":false},"excerpt":{"rendered":"
Last year I put my Roth contribution in a Fidelity sector fund concentrating on banking and investing (Fidelity Select Financial, FIDSX). It did pretty well and after it went up 20% I exchanged it for a high-yield bond fund in September (FAGIX). I wanted something more conservative than equities which had gone up a good … Continue reading “Roth 2013”<\/span><\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2012","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/posts\/2012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/comments?post=2012"}],"version-history":[{"count":4,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/posts\/2012\/revisions"}],"predecessor-version":[{"id":2446,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/posts\/2012\/revisions\/2446"}],"wp:attachment":[{"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/media?parent=2012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/categories?post=2012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fiveforks.com\/ted\/wp-json\/wp\/v2\/tags?post=2012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}