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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76094  
Subject: Re: Where to Put Roth IRA Date: 12/27/2000 7:34 AM
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Greetings, Suebug, and welcome. You wrote:

I want to open a Roth IRA for my husband. I think I should look for a more aggressive fund than an index fund since the risk is more tolerable with this money, and the Roth is more favorable for investments that might produce more tax liability. I would like to stick with Vanguard because I am comfortable dealing with them. Does anyone have a suggestion for a type of fund I should be considering for this investment? Perhaps I shouldn't even be considering it at all?

You will find that most Fools will not make a direct investing recommendation. That's because we believe these are intensely personal choices each of us must make for ourselves. Instead, we will usually offer thoughts for your consideration, which is what I'm about to do in this case.

If you're satisfied and comfortable with the S&P 500 index fund, then in the mutual fund world seeking some "riskier" investment in a managed stock fund of some kind will probably NOT be to your advantage. Over the long-term, the vast majority of managed stock funds do not perform as well as an S&P 500 index fund. In a retirement plan or an IRA, that means you end up with far less money than you would otherwise have by the time you reach retirement.

IMHO you would do far better in learning more and becoming more comfortable with what you're doing. Why not stay in the index fund for now until you do achieve the comfort level you need? There are plenty of materials available to help you do that. Start first by reading the 13 Steps to Foolish Investing at http://www.fool.com/school/13steps/13steps.htm?ref=STH13st. Then peruse the Investing Basics area at http://www.fool.com/school/basics/investingbasics.htm?ref=LN. Both will put you well on the road to making these decisions confidently and comfortably.

Regards..Pixy
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