First, make sure that you are including all forms of savings when you are considering how much you have to invest and how it is to be allocated. In particular, make sure that you take into consideration the fully vested portion of any savings plans at work, such as 401(k)s, and any IRAs.
Most mutual funds have lower minimum initial investments for IRAs. And many 401(k) plans offer several investment options with no minimums. By investing these assets in the lowest percentage allocation in your asset allocation plan, you can more easily meet the minimum initial requirements with your taxable savings.
For instance, let's continue with the scenario outlined at the beginning, but let's also assume that you have $2,000 in a 401(k) plan with a number of basic investment options. Your total investment portfolio is actually $4,000, which would be allocated: $400 each to a money market fund and intermediate-term bonds; $320 each to international and small-cap stocks, and $2,560 to core equities. Your $2,000 in taxable savings would meet the minimum initial investment for your "core" stock fund; the smaller commitments would be made within your 401(k) plan.
What if your 401(k) plan options are more limited? Consider first on meeting your allocation among the major asset categories: cash, bonds, and stocks, with your stock portion 100% invested in your "core" large-cap stock holdings. You can then build toward your other allocations, as outlined next.
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