Ask The Experts: Become a Millionaire By the Time You Retire

Q. I am 28 and have been maxing out my Roth IRA since 2003. I have invested all of this money in the Vanguard 2045 Fund. Is this a good long term strategy? -Diana, NY

A. Diana, congrats on maxing out your Roth for the last six years! If you keep that up for the next 30 years you will have a very good chance of being a millionaire by the time you retire. The Vanguard 2045 is a target-date retirement fund with five underlying funds with a current allocation of 89 percent stocks and 11 percent bonds. As you get older that allocation will shift and you will have a smaller percentage in stcoks and a greater percentage in bonds.

The Target 2045 fund has both US and international companies and I think that diversification is a smart move. At your current age and assumed portfolio size (under $50k), I think this fund is a great place to start. You may find however that over time as your knowledge level increases and your portfolio gets larger, that you may want added diversification and additional asset classes.

Until that time comes, keep doing what your doing. Starting early and maxing out your IRA and 401k contributions every year is key to your ultimate retirement success. You're on the right track!!

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Bill Losey, CFP®, CSA, America's Retirement Strategist®, is the resident retirement planning


expert on CNBC’s “On the Money”. He has been named one of America’s Top Financial Planners and is the author of Retire in a Weekend! The Baby Boomer’s Guide to Making Work Optional. He also publishes Retirement Intelligence, a free weekly award-winning newsletter. Bill can be reached online at