When I opened my Roth IRA account in August 2006, I purchased a stake in Fidelity’s 2050 Freedom fund as my initial investment. The Fidelity 2050 fund is a target (aka lifecycle) fund that readjusts itself annually as you approach retirement. Lifecycle funds are solid long-term investments, but Fidelity’s freedom funds invest nearly 9% of the net assets in the bond market. Considering that I’m still in my early 20’s, a stock-heavy portfolio would boost my investment returns over the long run, courtesy of ol’ compound interest. Plus, I already own savings bonds, and plan to setup a US treasury bill ladder later this fall.
So I liquidated my stake in FFFHX, locking in 9.61% gain since my initial fund purchase. 9% isn’t too shabby, but I missed out on 15%+ gains by investing rather conservatively.
Please Share your Mutual Fund Ideas
Now, I’m turning to you for potential fund ideas. I am well aware that many of you invest in mutual funds, so please share any solid mutual funds you either currently own or have knowledge of. My goal is to amass a list of 5 potential mutual fund buy candidates by Friday. Over the weekend, I will cut down the list to 2-3 of which are the most likely picks. Then by Monday or Tuesday, hopefully the stock market will trade calmly so I may enter a fund position.
Own a solid mutual fund? If so, what is it and why did you invest?