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New ROTH IRA, Which Fund is best?
Old 11-04-2008, 12:10 PM   #1
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New ROTH IRA, Which Fund is best?

Hi. I just opened a Roth IRA account today through ICMA-RC, and I am wondering which fund would be best suited for me. I have 23 more years before I retire at 50 in my profession. I ended up putting 100% of my funds into the Vantagepoint Milestone 2030 Fund, but I did it without much knowledge. Any advice on what would be a better pick?

Here is a link to the choices-

The Vantagepoint IRA Fund Lineup - ICMA-RC
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Old 11-04-2008, 12:19 PM   #2
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Great that you are saving for retirement, with many years ahead of you!
I think, generally speaking, most would not have a problem with your selection of a Target Retirement fund of 2030. Most here tho, would suggest funds with as low as possible expense ratios, as these expenses add up to big $$ over time, especially with 23 years ahead of you.
Vanguard, Fidelity, and others have low expense ratios of Target 2030 funds nearing .2 percent compared with about 1 percent of the Vantagepoint funds, and they are basically the same investment.
If you decide to switch to Vanguard or Fidelity or another with a low ER, it is not a big deal, and they can hold your hand through the process.
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Old 11-04-2008, 01:06 PM   #3
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Quote:
Originally Posted by BigBob View Post
Great that you are saving for retirement, with many years ahead of you!
I think, generally speaking, most would not have a problem with your selection of a Target Retirement fund of 2030. Most here tho, would suggest funds with as low as possible expense ratios, as these expenses add up to big $$ over time, especially with 23 years ahead of you.
Vanguard, Fidelity, and others have low expense ratios of Target 2030 funds nearing .2 percent compared with about 1 percent of the Vantagepoint funds, and they are basically the same investment.
If you decide to switch to Vanguard or Fidelity or another with a low ER, it is not a big deal, and they can hold your hand through the process.
What he said.
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Old 11-04-2008, 04:55 PM   #4
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Thanks for the advice BigBob. I was fortunate to be working with a lot of older guys when I first started my career at 21. They forced me to start going to retirement seminars with them at work, even though I didn't think I needed to. Thanks to their wisdom I have a pretty healthy nest egg through deferred comp, my new ROTH IRA, and my pension at 28. It does make a difference starting early!
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