Hey guys- I am 18 and just started my roth ira. What should I invest it into? I am considering a high-yielding vanguard index fund (3.6%) yield (VHYAX). Or should I invest in a targeted fund? Or a regular index fund? Which fund will help me most on my journey to financial independence??
18 year old roth
- Thread starter eliota
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pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I woudl suggest this https://investor.vanguard.com/mutual-funds/profile/portfolio/vttsx $1,000 minimum
or this https://investor.vanguard.com/etf/profile/overview/vti
or this https://investor.vanguard.com/etf/profile/overview/vti
GalaxyBoy
Thinks s/he gets paid by the post
Read this: http://tuttle.merc.iastate.edu/Bernstein_If_You_Can.pdf
And this (much longer): https://www.bogleheads.org/wiki/Outline_of_investing
But at your age (congratulations for starting so early, BTW) I’d probably put it in a total stock market index fund and forget about it for a decade.
And this (much longer): https://www.bogleheads.org/wiki/Outline_of_investing
But at your age (congratulations for starting so early, BTW) I’d probably put it in a total stock market index fund and forget about it for a decade.
Vacation4us
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I started my daughter’s when she was 18 with her tax return for the year. So less than $1000.
She has a Fidelity GO account. Managed by Fidelity for 0.35% I am sure Vanguard has a similar account.
I am more proud of the 30 k my 21 yo has then all of what I have.
Save early, save often and you’ll have it made.
She has a Fidelity GO account. Managed by Fidelity for 0.35% I am sure Vanguard has a similar account.
I am more proud of the 30 k my 21 yo has then all of what I have.
Save early, save often and you’ll have it made.
SnowballCamper
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I'd put it VTI for now, and set up contributions to come out of each paycheck. By paying yourself first, in this manner, you avoid the temptation to time the market. In other words, you don't have to decide when to buy because it happens automatically. As a result, you buy more shares at lower prices, and fewer shares at higher prices (compared with the average price you pay over a year).
It will seem slow at first, but after a few years there will be a point where the annual gain in asset prices excess your contributions, and then it really becomes enjoyable to watch it grow.
If you start to get anxious about downturns in the market, then switching to a target date fund will reduce your volatility, but ideally you don't make the switch at a low price.
Kudos for starting early!
It will seem slow at first, but after a few years there will be a point where the annual gain in asset prices excess your contributions, and then it really becomes enjoyable to watch it grow.
If you start to get anxious about downturns in the market, then switching to a target date fund will reduce your volatility, but ideally you don't make the switch at a low price.
Kudos for starting early!
HI Bill
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100% VTI ETF with Vanguard! Great job starting early!
EastWest Gal
Thinks s/he gets paid by the post
Agree, 100%.
