I’d like to invest in something easy like Target Retirement fund, low fees and little intervention on my part for long term. Basically, I want to create an investment other than a 529 for my 17 year old grandson. I’ll name him as beneficiary while I contribute to it. What is a low maintenance mutual fund other than Target Retirement Fund for long term? Maybe something less conservative?
Don’t use Target funds outside of retirement accounts. They turn over assets too frequently, and you will owe capital gains taxes.
I use VTSAX and VFIAX, but you still get dividends you have to pay taxes on. Fidelity has comparable funds. FZROX is one.
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If you want to be invested fully in the market, then a good option is one of the Fidelity Zero funds, probably FZROX, their Total Market Index Fund.
If you want a fund that you can “set and forget” for many years you might want to reconsider a target dated fund. I saw a Vanguard 2070 fund that’s 90% stocks and 10% bonds. It will, of course, become more conservative over time.
I use SPY or VTI for the core domestic large cap stocks. I also use VXF, EFA, and EMXC.
That said capital gains and financial aid eligibility are important considerations. Also if your grandson is working, consider a RothIRA
You could buy him a few shares of Berkshire Hathaway B shares:
Berkshire Hathaway Inc. (BRK-B) Stock Price, News, Quote & History - Yahoo Finance
No dividends paid and owns numerous companies and independent stock shares like Coca Cola. Wouldn’t have to put all the eggs in the basket on this one but it may be a “speculative” play as it is a stock ultimately and not a mutual fund.
I’ll tell you about easy long term investments… the main determinant is your ability to hold through rough patches, which could last years. Most everyone claims to be a LT investor, but if stock prices go down far enough for long enough, they lose patience and sell, usually close to a bottom.
With a mix of Vanguard’s Wellington (85%) and STAR, (15%) I’ve had an average annual return of 8.2% over the last ten years.
For every $1 I put in 10 years ago I now have $2.06 today. The last peak was in Dec 2021 when it was $2.54 for every $1 invested.
Ya mean like… “When others are afraid, be brave. When others are brave, be afraid.”… ?
Wisdom doesn’t always accompany age, but the combination of youthful exuberance and wisdom is pretty rare.
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The easiest and of course most boring mutual fund out there would be something like the Vanguard index 500.
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“The easiest and of course most boring mutual fund out there would be something like the Vanguard index 500.”
The US S&P 500 might very well might not be the leader in the next decade. It has become way overvalued since 2009. The overvaluation cannot keep getting bigger. That would lead to a ridiculous kind of conclusion… trees do not grow to a mile high. At best, it keeps the current overvaluation relative to the rest of the world, and that’s a tall order. The US market is no longer being pumped with free money. 6 month T-Bills are 5%. The Silicon Valley Bank failure was caused by higher interest rates, aggravated by old fashioned panic and bank run.
The S&P500 has averaged 11.82% since inception, 1926.
A person at age 20 contributes $600 a month into Roth Ira 500 index fund and stops at age 30 and doesn’t put another dime into could have $1.5 million in it by age 65.
For each $ put into it at age 20 could multiply 88x by age 65, 1$ would equal $88.
These are facts based on an average return of 10%
This info comes from the money guy and I believe it to be true
Of course, past performance has nothing to do with future performance, but we all know that time in the market is what will make you the big money in the long run.
I have been in it since 1986 and keep seeing the zero’s move toward the left of the decimal point.