Cash: $ 751.85
Joined: 21 May 2006
Based on your age, I would be 100% in the VITSX. Three reasons - 1, it is unmanaged, and 2, it is widely diversified.
1. History shows that only 15% of fund managers beat the SP500 Index (which has a longterm average of 11%/yr). That means that you'll do better by directly owning the index. And it makes sense, the fund managers are trading those same 500 major companies that are in the SP500 Index; they would need to get about a 14% return (3% for overhead and 11% for you) - and it is extremely difficult to get 14% from a group of stocks that earns 11%/yr.
2. Diversity- the SP500 or the VITSX Total Market diversifies you across the entire American and much of the world companies.
Most of us are given about 30 years for wealth-building, age 30 to 60. After 60 you need to shift toward wealth- preservation, ie bonds, bond funds, CDs. That means that it is important to stay fully invested in equity items during the 30 to 60 era - no income products, CDs, bonds, etc.