ROTH IRA mutual fund choices...

[Superfly]

Hi, all! I am debating whether or not to buy $3000 more of Bridgeway Agressive II (BRAIX) for my wife's ROTH. I really like what I see and read about this fund, but am leary of going too agressive...

Here's where we are:

1) Wife's ROTH already has a conservative growth portfolio that grew 20% last year.
2) I maximized this years (2003)(mine) ROTH with $3000 of BRAIX.
3) I am 30, she is 28.

Should I buy more of this fund? I think we can stand the added risk exposure since we have such a long time-horizon until we need these funds. I really like what I see with repsect to Bridgeway's business model and ethics. Whatcha all think?

Brian

[swag]

1. The expense ratio is too high

Hi. Good luck with the investments.

By my lights, the expense ratio of 1.9% is way too high for any mutual fund. That immediately takes 1.9% off your return for the year.

I like Index Mutual funds for a lot of reasons, but mainly for the low expense ratios (0.18%, 0.2% for a lot of Vanguard funds).

I'm not a professional.

[Superfly]

2. The problem with index funds is

that they will never outperform the index to which they are tied.

[swag]

6. 70% - 80% of actively managed funds won't outperform

the index either over time.

But to each his own. If I were paying 1.9% to a fund manager, I'd wanna be damn sure that thing would outperform the market by at least 2% a year over the long term.

[TXlib]

3. Hire a financial planner

S/he'll help you optimise your asset balance.

[Superfly]

4. I used to be one...

but even financial planners need somebody to be the "honest broker"

[gWbush is Mabus]

5. buy VTI

I would NOT be getting aggressive here
I'd keep the cash and invest it in VTI when the market declines about 30%.