TROWE 2040 fund ?????

[runnerr]

Happy 4th, I received the following letter and would like some in put for the best direction for my nephew. Anyone know about Trowe 2040 or any other suggestions?

Do you knkow anything about the TROWE 2040 retirement fund? I'm looking at it right now and it seems to be getting the best reviews for someone my age looking to retire around that time? Going for roughly $20/share. Do you think if I decide to go with that one that I should set up an automatic deposit 2x's a month and invest into the account like that? I didn't see where there was a certain age in which I could withdraw b/c I know some accounts you have to be 59-70 before you can withdraw (hence your ROTHIRA AND IRA) Any info you may know I'd appreciate it. Within the next month I'm going to have all of my future finances in order...

Matt


Thanks runnerr

 

[LOL!]

It's a good starter fund for a Roth or traditional IRA account now. I would not hold it until 2040 though. Nor would I hold it in a taxable account. TRowePrice doesn't have the lowest fees of target retirement funds, Vanguard does, but the asset allocation of TRowePrice is more aggressive.

If it is held in a Roth IRA, then there would be no tax consequences to switching to something else in few years.

 

[yakers]

LOL said it all; good in tax free/deferred, more agressive than VG and slightly higher fees. Not a bad way to start.