Quote:
Originally Posted by pocketkangaroo
If it's retirement, just put it in a target fund based on the year you plan to retire. Almost every brokerage has it. I think I'm in the Fidelity Freedom 2045 fund. They are incredibly diverse and adjust as you get older. Yes they aren't fancy, but it's easy and probably end up providing much better returns than if you went at it on your own.
The only thing to watch for is expense ration on these. Vanguard is probably the best at this and carry some of the lowest out there, although Fidelity is not far behind.
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The target funds aren't that great. They don't take into account individuals risk tolerance. Also, many funds don't actually match the proper style investors should have. For example a 2050 fund should probably be 100% in stocks but it's not all ways the case. Also in many cases 2015 funds have more stocks than they should.
You are better off finding an asset class mix that's appropriate for your age and needs and then buying ETFs to reflect that mix.