Looking for a good mutual fund for retirement savings.?

Question

I am looking to invest in a mutual fund for retirement. I plan on retiring in about 25 years. Looking for one that has good solid growth over the long haul. Anybody have any ideas?

Answer 1

Franco is right to an extent.  Studies have shown that WHICH fund you pick has much less impact your performance than your investing habits.  You're starting early, so you're off to a great start.  Once you make your initial investment, be sure to set up an automatic savings plan so that a fixed amount will go from your checking account into your retirement fund each month.  You'll be amazed at how quickly it will add up.

Since you have a long time horizon, I would suggest you start with a stock fund.  If you are new to investing, begin with an S&P 500 index fund - this will spread your investment across the 500 largest U.S. companies, and will serve as a great "core" fund.  As your assets grow and you learn more about investing, you can add additional funds to compliment your index fund.

You should look for a solid mutual fund company, one with reasonable expenses, and with which you can have many good options to add to your portfolio down the road.  My favorites are T. Rowe Price, Fidelity, and Vanguard.  All have excellent websites, and all have outstanding phone reps who are friendly and very helpful.

I hope that helps - good luck!

Answer 2

A fund's historical performance tells you nothing about the future. The economy changes and fund managers change jobs every 21/2 years on average. Further more, 80% of managers fail to beat the index. In the average fund, over 25years, the manager will take 25% of its value. It is pot luck.