I’m a college freshman and ever since I heard your podcasts in my senior year of high school, I’ve wanted to start investing my money for retirement. Now that I’m 18, I’m able to open a retirement account, but I currently only have around $250 to invest because I come from a low-income family. I remember, from one of your podcasts, that you recommend ETFs for college students because they have no minimum. I tried to open an account with Vanguard, but it said that I need a minimum of $3,000 to put in the prime money market to open an account before I can begin to buy ETFs. I’d really like to invest in Vanguard because of your recommendation. How might I buy a Vanguard ETF without having $3,000?
Q: My question regards REIT funds. I’d like to diversify my portfolio to include some real estate. You recommend in your books to open this asset class as an IRA (traditional or Roth). However, for my case this may not work.
I am a US citizen living and working overseas. My income falls below the Foreign Earned Income Exclusion amount, and so I am unable to open/contribute to an IRA in the US. So, if I diversify into an REIT fund, I will have to accept the higher tax burden that comes with these accounts. My question is: do you think that it is worth it, in the long run? (I plan on working overseas for the next 4-5 years at least) Or should I skip on diversifying into real estate until I am able to do so in an IRA? Would an REIT ETF fund be a better move over an REIT mutual fund?
Q: Thank you so much for your MarketWatch article about “The Ultimate Buy & Hold Strategy“. I was wondering: Should I wait for a pull-back in the market before switching our retirement funds to your strategy?
Q: I have a Vanguard account and have been following your recommendations with the nine different asset classes that you recommend in Financial Fitness Forever. This year I noticed the Emerging Markets Fund VEIEX has not done very well but every other fund has had a good return. I’m just wondering, do you still recommend VEIEX as part of your Vanguard recommendations? I am a long time listener of your podcasts and reader of your books. Thanks for giving me the knowledge and confidence to take on my own investments!
Q: Would your recommend anything different for our 60% in Vanguard? Seems lots of advice, including from Pimco, to get out of bonds. I’ve been following your diversified Vanguard portfolio at 60/40 for some years. Do you see the coming downturn as any more significant? Would you recommend anything different for our 60%?
Q; I follow your recommended Vanguard portfolios and wonder what you think about the recent addition of two International Bond funds – the Vanguard Total International Bond Index Fund and the Emerging Markets Government Index Fund?
This comment/question is from Paul’s MarketWatch article The one fund every investor should own
Q: Wow, you are extrapolating the past into the future there. Very creative analysis! Or wait… wait a second! Wasn’t all this extrapolating the past into future one of the behaviors that led to massive losses during the financial crisis?
QUESTION: Your recommended bond funds include Tips and Treasuries. What do you think about allocation to foreign bonds, such as Australia or Brazil? Some even recommend bank loans, e.g., BKLN. Or am I just reaching for yield?
Question: I’ve noticed that my recent investment performance has been significantly lower than the recent performance of the S&P 500. Does it still make sense to stick with your recommended Vanguard Index Funds vs. the simple Vanguard S&P 500 Index?