Well, I am opening up a Roth IRA with two mutual funds. The Wellesley Fund and LifeStrategy Mod growth but I put down $3,000 in each. Is that good or a bad Idea... I looked at the "Who should invest" that fits me. charges, they have no fees... the expense ratios are also low. Both funds are balanced funds. I haven't yet submitted but so far those two are optimal... I don't have a 401K that matches which is why I am going Roth right now... I am only 19 so.... I can start my 401K when I actually get a college educated job.
2007-02-28 12:15:04 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
I started an IRA 20 years ago with the New Beginnings Fund and it has done well.The funds you chose are also very good ones.
2007-02-28 12:24:48 · answer #1 · answered by Jim C 6 · 1⤊ 0⤋
You are doing a very smart thing...but like a couple of other people have said, you're being way too conservative for 19. It's really understandable , so it's okay by me....
I would sggest that you make up a yahoo portfolio with your funds in it....and then add two alternatives ( back to research) ,
if you're with Vanguard add VEIPX and VHGEX......"pretend" to add $ 3000. to each....so down the road, maybe some weekend at school , a year, eighteen months from now....you can compare the four right there on your yahoo homepage if you want.... and I'm pretty sure you'll want to exchange out of at least one of the conservative funds.
Try this http://www.finishrich.com
Go to the "latte calculator" and put in 7% and then 10 or 12%, see what just a little more " aggressiveness" will do to your totals.
One way or the other..you've still got a jump on 99% of your peers.
Best of luck.
2007-02-28 14:09:13 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋
CONGRATS on starting so early in life!
You probably won't get into too much trouble with balanced funds. I think they are a conservative way to invest.
Both the Wellesley Fund and the LifeStrategy Fund may be TOO conservative for you. Wellesley has about 62% invested into bonds and cash and the LifeStrategy has about 35% in bonds and cash (according to Morninstar). At your young age I think you can take more portfolio risk with your retirement funds.
REMEMBER: there is "inflation risk" which is the risk of your assets growing slower (or too close to) the rate of inflation (the cost of goods and services rising). So you want to invest aggressively enough to far surpass inflation, meaning more of your investment into stocks. Don't forget the international stock markets, too.
2007-02-28 12:41:20 · answer #3 · answered by RPadvisor.com 1 · 0⤊ 0⤋
I personally have a fetish for Vanguard. They do no wrong with me...
2007-02-28 13:13:10 · answer #4 · answered by Modus Operandi 6 · 0⤊ 0⤋
http://l.yimg.com/img.avatars.yahoo.com/users/10WvKLwixAAIFA8KnCB5Ttt4GIHKcjw==.large.jpg
2007-02-28 12:17:44 · answer #5 · answered by Anonymous · 0⤊ 0⤋