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Author: rkmacdonald 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 74759  
Subject: Re: roth for mom and dad Date: 3/3/2004 6:44 PM
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Author: BigArb | Date: 3/3/04 1:05 AM | Number: 39623
I did some research anf found the T Rowe Capital apreciation fund, which seemed foolish, low expense ratio. I was also thinking about getting them VTSMX but didnt know if it was a little too risky. My parents actually want me to be pretty agressive but I would feel horible if I lost there retirement money.

You are absolutely right to be worried; especially if your parents don't have any experience investing in stocks. And, be even more careful if they expect you to make up for years of not saving for retirement!! My personal experience is that whenever a relative asks for your advice on investing their retirement money, they are going to watch it (and you) under a microscope. If you lose any of it, they might be very upset, and say something like "I knew I should have bought CD's". However, if you are very conservative, and make a small amount they will be very happy. That way, even on a down day, you can point out how much less it went down than the DOW. And, you can point to the dividends being generated (they always love dividends). After they begin to trust you a little more, you might be able to be slightly more agressive with a small portion of the money.

I probably start with a fund like Vanguard's Conservative Growth Fund. It has low expenses and should make money fairly consistantly, although it can lose money in the short term, like any other fund that invests in stocks or bonds.

Russ
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