then go Roth IRA and have someone help you pick some diverse funds and let it go on autopilot....If you pick good quality funds you can sleep easy and not have to bbsit you money like you would with an over aggressive money manager trying to be greedy shooting for 14%+ just my.02
Totally agree. There's a guy on Asset Builder that has put together what he calls a
Couch Potato portfolio for people wanting to invest long term (e.g. 401k/IRAs) with goals of good returns every year, low expense ratios, simple diversification, all weather portfolio that should require minimal watching/maintenance. Really, all you would have to do is keep an eye on the individual mutual fund balances and re-balance every 1-2 years just keep the % breakdowns about right. I've been using his approach for about a year now w/ good results... only wish I would have read about this kind of approach 10 years ago.
I used to be in the "pick a winner" camp trying for that huge return. I've since learned my lesson! Your odds of consistently picking a winner in the market is worse than winning Mega Millions.
Honestly 14% is a unrealistic goal for any long term retirement goal in my opinion. You should shoot for 10% long term and history has shown since the great depression as followed the major companies like the S&P 500.. Unless you are paying someone to individually manage your money your going to be lucky to make 10%.
Also agree. OP, you need to keep mind that if you go the "managed" route... whether it be with an investment firm that is actively managing your money, or managed mutual funds, you're paying them in some way for their 'services' - they aren't doing it out of the kindness of their heart - sales commissions, loads, fees, expense ratios, etc. Also, if you do some research, you'll see that index funds generally out perform 99%+ of the managed MFs - and at lower expense ratios.
Lastly, the other thing you need to consider is that you're young, and probably don't have a ton of money sitting in your retirement accounts. That's good in that it gives you more flexibility in that you can be a little less worried about risk & staying awake at night worrying about your returns. It's bad in that many investment firms aren't going to want to talk to you until you have a 6 figure retirement account for them to manage... or they'll work with you, but then you have to really watch the fees, commissions, etc. There's not much incentive for them to manage your account with $10k in it when they're average account size is probably 6-7 figures.
Personally, if I were you, I would look at doing something like I linked to above... then open a Roth 401k account at Vanguard... invest following the simple recipes shown... and after a few years, once your balance has built up a bit, if you're not happy with your returns, then consider making a different move.
