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Homestead Funds are they a good choice for a 23 yr old who is just starting out and would like to start a Roth?

http://www.homesteadfunds.com/

MEG
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Ya got the right idea MEG, 23 years old and already starting a Roth... looking into my crystal ball I see someone named MEG retiring before age 60.

If you're considering an index fund I can't see any reason to stray from Vanguard. For example, Homestead's S&P 500 index has about 0.6% higher expense compared to Vanguard's S&P 500 index... invest $10,000 with Homestead and your basically DONATING $60 every year to some Homestead fat-cat executive's year end bonus.

Gromit
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Homestead Funds are they a good choice for a 23 yr old who is just starting out and would like to start a Roth?

http://www.homesteadfunds.com/

MEG


The REAL question is: are they a good choice for ANYBODY? Their big value fund HOVLX appears to hold its own against some other good ones (DODGX and OAKLX for example) but the small-cap fund is awful and rates only 2 stars. They don't offer a lot of funds to choose from, and it does not look like any of them have been making much money.

Being 23 years old has nothing to do with whether the fund one buys is better or worse. And the investor's age surely does not make a particular fund company better or worse, unless perhaps they give out free Xbox games with every account <just kidding>.

In other words, I think one should try to buy good funds no matter what age one is. Beyond that, one simply balances one's asset classes in ways that one believes are appropriate for the circumstances at hand. No matter what fund company you invest with, you should be looking for a diverse portfolio, to reduce overall volatility while taking best advantage of market growth, wherever it may be.

As for how to pick good mutual funds, that issue has been discussed here a zillion times. With something like 20,000 mutual funds out there, I don't think it's an effective research strategy to pick one fund company, run it up the flagpole here, and see if anybody salutes.

WHY are you asking the question? WHAT is it that makes you ask about that company, as opposed to some other company? One would really need to know a whole lot more detail along those lines, to be able to answer the question, or at least comment more meaningfully.

As for WHERE to hold a Roth IRA account, there are widely mixed opinions on that subject, too. Reading the message base here for the past few months would help you a lot -- and would yield far more information than you're likely to get in one thread. I recommend that as a good starting point. I think you'll get a lot of good ideas -- and perhaps some answers, even without having to ask any more questions. Hope this helps!


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I'd go with Vanguard or Fidelity. Fidelity has the lowest cost s&p500 fund (Spartan 500 Index), and vanguard's are also very cheap. (Personally, my Roth is with Fidelity, and my regular taxable baseline investment fund is with Vanguard.) Also, Vanguard is about to introduce a Dividend Achievers fund - just think S&P 500 but with the companies with a track record of increasing their dividend (which is often touted for companies that regularly beat the s&p500).

Check over on the Index Funds forum - spirited discussions over there lately.

Good luck,
DD
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NO

www.troweprice.com

www.Vanguard.com

Total market index, Total international index.

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