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Author: wcfenton Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: where to invest? Date: 12/31/2004 4:26 PM
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-hep1974...

i'm very new to this...i want to "set it and forget it" and just watch it grow throughout the years. i realize i will accept some loss, but hope to end up on top. i do not plan to take anything out for at least 35yrs and when i do take it out, i may deplete most of it throughout the retirement years but also hope to provide some income if possible. am i asking too much?

ok, my question (finally)....i don't have much to start off right now ($150) where should i put my money? i was thinking of a s&p500 index fund, but other than that - have no clue where to put that $150 to good use. HELP!

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From the little you have told us, my thoughts are that you should probably save enough money to start a Roth IRA directly with the low-cost leader of index funds - Vanguard. Personally, I would dump the middle-man. To do this, you will need to save $1,000 to initiate a Vanguard Roth IRA:

http://flagship2.vanguard.com/web/corpcontent/scatSvcsRetIRAOV.html?Entry=spotlighton01

The next thing that I noticed from your post was that you want a "Feed-it-and-Forget-it" type of investment. I personally believe that it would be hard to beat a "Target Retirement" type of fund that is a "Fund-of-funds" including the Total Stock Market Index Fund, the Total Bond Market Index Fund and two International funds to round off a pretty good, diversified portfolio...all with one fund that automatically changes it's allocation (gets less risky by reducing equities in favor of bonds) as you get closer to retirement:

http://flagship4.vanguard.com/VGApp/hnw/content/Funds/FundsVanguardFundsTargetOverviewJSP.jsp?Entry=spotlighton02

I know I sound like a Vanguard Salesman - I'm not! I believe in Vanguard because they are the low-cost leader, they are owned by the investors, and the employees are salaried and not on commission. They are also only second in size to Fidelity which is also a decent fund company. Finally, by way of disclaimer...I do own a couple Vanguard Accounts.

Anyway...take a look.

Regards,
Bill

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