Rolling over a sizable ($200k+) traditional IRA from a previous employer and don't have much time to pick investments. Found a collection of 12 ETFs that result in much more diversity than just the S&P 500 (small vs large; international vs US; value vs growth). Not interested yet in bonds since I still have 20+ years until retirement. Figure the ETFs will minimize annual expenses vs mutual funds. I do plan to rebalance annually using a discount broker and review prospectus information. My question is if this all seems reasonable or if I'm missing something about ETFs or good portfolio management practices in general that I should reconsider before I dive in.
Adam J answered:
Nope, that's entirely reasonable. That strategy will cover you against anything but a massive depression (which you have plenty of time to ride out) or a sizeable planetwide catastrophe (in which case your IRA will be the last thing you'll be worrying about).
And I'm not betting on the depression--while I could see a recession or two, advances in biotech, nanotech and computer science should keep the market moving upward at a solid pace.
Zenthema answered:
I don't see anything wrong in ETF's as long as you watch and trade them. Money in the stock market is at risk. You can't just let it sit..things go up and also down. You need to monitor prices and also get some
education in trading.
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