Help me choose an index fund.
September 4, 2006 8:16 PM Subscribe
Help me choose an index fund and a financial institution.
posted by Pontius Pilate to work & money (18 answers total) 18 users marked this as a favorite
So, after reading all the helpful threads about the importance of Roth IRAs and and the benefits of investing in your retirement as early as possible, I am ready to take the plunge. I have about $2k to put away now, and I should easily be able to put away another $2k before next April to max out my Roth IRA contribution for this year.
The last step is selecting my financial institution and the particular index fund I'm going to invest in. From comparing rates and user reviews, I have heard good things about Vanguard, Sharebuilder, and Fidelity. However, I'm kind of a novice to investing, so I am not sure that I am absolutely fully aware of all the fine print and miscellaneous fees that will reduce my return. I would really like to hear people's personal experiences with these three companies (suggestions for other companies gladly welcomed, of course), and what has worked out best.
As far as index funds - I am starting out young, so I'm strongly considering something more aggressive than the standard S&P 500, DJIA, NASDAQ, etc. Would something like Emerging Market Value / Emerging Small Cap be appropriate? Would it be totally foolish of me to invest only in the higher-risk indices, ignoring the safer but lower-return conservative index funds?