No. of Recommendations: 2
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 Then peruse the Investing Basics area at Both will put you well on the road to making these decisions confidently and comfortably.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.