What is the best mutual fund to invest in? I'm 25 and I want to open a Roth IRA account.?

Question

I'm looking for a fund that has the lowest cost (no load and no sales load) but with the highest returns.

Answer 1

You want to go with a pretty aggressive fund because you have a lot of time to make up for fluctuations. The longer the investment is for the more aggressive you want to make it. It somewhat depends on your personality though. If you are going to kill yourself if you lose 20% next year, being very aggressive is not for you. I have had years I lost that much and a little more. But I have an aggressive personality and I have OVERALL made about 12% which is fantastic.

As to exactly what fund, talk to a financial adviser. Talk to 3 or 4 and pick the one who thinks the most like you, but understands investing. He will point you in the right direction.

DO NOT listen to the Internet for the exact fund. Most anyone who would make a recommendation without knowing you and how you think, are not really looking out for you.

Answer 2

A Roth IRA is the best way to go for you and if you can fully fund the Roth at 333.33 a month, with the max this year being 4k or you can invest in as little as $25.00 a month. My kids did this and have save quite a bit for retirement. Better yet, even if they stopped contributing today, that money would still grow tax free. (Only choose Class A Share Funds. You might have costs taken out up front, but that is the best way to go, with no hidden fees. Don't let anyone tell you different. What you don't know about the fees on no load or no sales load would shock you. Believe me, there is always a fee) I would love to do a free financial analysis ( which is free to all our clients) to make sure that all your finances are in order. I never will charge you for my advice of services.
Primerica Financial Services

Answer 3

The way you phrase the question, it's like you're asking for a car that can do 180 on the highway, while also serving as an unparalleled offroading vehicle.

While it's important to remember that a mutual fund's fees are coming out of your bottom line, it's also important to put the fees into perspective. If a fund is charging higher fees, but generating much better returns than one with lower fees, you're better off paying a little extra.

"Highest returns" isn't all it's cracked up to be, either. Any fund has its good years and its bad years, so any fund can be made to look exceptional or take - it - behind - the - chemical - shed - and - shoot - it, depending on which timeframe you select.

Finally, it is possible to make your money serve other purposes as it serves you. Google for 'socially conscious investing' if you're interested in making the world a better place. But at an absolute minimum, you should be interested in quizzing the funds you're interested in on their stock selection criteria. You don't want your retirement financed by twelve year old diamond miners in Sierra Leone.

Answer 4

Go with Vanguard. They are like the Wal-mart of the mutual fund industry. No-loads and low expenses.

Anothe word of advise, don't buy into the best returns. Spread your money around in different types of funds. A good fund today may suck in 5 years and a loser today could triple in 5 years.

Vanguard's web site has a lot of good information for the beginning investor.

A Roth IRA is a great idea for someone your age.

Answer 5

I don't have a problem with the idea of supplementing the 529 savings with an additional investment in a mutual fund. Since you can own a mutual fund within a Roth IRA, the real question is really whether a Roth IRA will work for this particular purpose of funding your child's college education. The primary benefit of a Roth IRA is that investments held within it grow on a tax free basis AND you will not pay taxes on distributions of the appreciated capital from the Roth IRA so long as those distributions are "qualified distributions." What's a qualified distribution? To a qualified, the distribution MUST be 1.) made on or after the date YOU become age 59 1/2; OR 2.) made to your beneficiary, or to your estate, after you die; OR 3.) made to you after you become disabled within the definition of the IRS code; OR 4.) used to pay for qualified first-time home buyer expenses. Plus, even if one of the qualifications above is met, the distribution is STILL not qualified if it is made within a five-tax-year period. Well nothing prevents you from using funds from those distributions to pay for your child's educational expenses, if you hope to reap the tax benefits of a Roth IRA you must stop making contributions five tax years prior to your child going to college and you must either be at least 59 1/2 years old, disabled, or dead. Most people have their kids before age 40, and planning for a timely disability or death puts most folks off. What I would suggest doing is sitting down with your tax adviser to see if you would be better off transferring the account from your name to that of your child. The tax ramifications may be less for them than it is for you. One draw back is that if the account appreciates significantly by the time your child turns 18 years of age, they may opt to use if for something other than college. It's their money... I have no input on your particular selection of fund, but Vangaurd is a fund family that I would be comfortable investing money with for myself or my family. I would suggest adding a second fund to the mix as that one fund appreciates, so as to provide some additional diversification once the assets become significant. You'll also want to consider shifting assets to shorter term investments once your child reaches high school since you'll want that money available in less than five years. I'd say by the time they are a high school senior you'll want to be at least 25% in cash, with the rest in something very safe like T-Bills. Good luck!

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Answer 6

mutual funds have different investment objectives depending on your investment needs. At 25, you can be pretty aggressive and lean towards higher risk growth funds (vs. income funds). If you sign up for an account with Charles Schwab or other online investment firms, you can buy and sell mutual funds with very low transaction costs on your own.

Answer 7

I opened a Fidelity account around a year ago and so far my return has been steady at 12-14%

I have whats called the "Freedom 2035" fund. It is very well managed and auto-balances for us lazy people.

Give Fidelity a call, they will treat you like royalty.

Best of luck! =)

Answer 8

ROTH IRA is great but wont payout until your 70. Good news is
no taxes and low investment.

Answer 9

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Answer 10

before you walk, you have to crawl first. It is the right thing to start early, First open the Roth IRA first, accumulate good amount of cash first. In the mean time, Learn how to invest properly. Chcek this book out. Stock Traders Almanac by Jeff Hirsch
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com section university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 74,000.00 and 30000.00 in taxble account. by follow simple rule