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?
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
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While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.