What is the best Retirement fund to invest in? How do I get started?
Answer:
If you are just getting started on retirement funding, my assumption is that you are in your early twenties. With that in mind, I have a lot of suggestions.
#1 is to make sure that putting money into something like an IRA or 401K is timely. I wouldn't put a dime into either unless you already have a short term emergency fund of about 3 months net pay as well as any other funds needed - like more education, money for a wedding/honeymoon etc. If you don't do this, life will most likely bite (like it did to me years ago) and then you end up pulling the money out, paying taxes and penalties. OUCH!
#2 get a copy of Dunn and Bradstreet's guide to investing. They use a pyramid/tiered approach, and the emergency fund is the first tier - BEFORE putting money into an IRA/401K.
#3 Next is a budget that sets money aside for home ownership. Home ownership historically has been a better investment than an IRA or 401K, so you want to make it a priority. If you can't pull off setting $$ aside for both the IRA/401K AND the house - MAKE THE HOUSE THE TOP PRIORITY.
#4 Investments after the house should be conservative at first (many years) - don't try to buy a protfolio of Almagated High-Tech Upstart Dohickey Inc. Odds are you'll lose your hard earned dough and more importantly all the years of compounded interest. Do a calc on 9% compounded on a $2000 investment for 40 years. Why risk that kind of dough on a speculative replacement for the cheese-weenie? Go tried and true, go big blue (chips) initially, preferably in an index fund to spread the risk further.
Anyway, Louis Ruckeyser I'm not. Get the book, go from there. You're already doing a great job 'cause you're thinking in the right direction and asking questions - and not from some investment outfit that just wants your business.
Ok, here's avery unorthodox answer for you: Invest in your health, then you'll enjoy your older age! Also, have children and love them all you can, then you'll have a big family to take care of you when you're older!
Ok, if you want to be a capitalist about it, RiverSource Funds are the best. Get yourself a financial advisor through Ameriprise.
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