Quote:
Originally Posted by Cornstock
Lewdog is exactly right, your contribution limit is 5500 per year (6500 if you're old enough for catch-up) combined between any IRAs you have. Vanguard is a great way to go with no cost traded for their funds (which perform great and track their indexes closer than spyder or ishares etc in most cases) with the added value of having microscopic annual overhead.
ETFs track an index on an automated level rather than having a person do it so they will have a lower expense ratio, with intraday liquidity if that is of value to you. a mutual find can only be traded at the end of the day, so if a disaster happens in the morning and you want to sell out, you have to wait until the end of the day to cash out.
If you want to be slightly more aggressive and only invested in equities rather than an equity/debt split (i.e. target date funds) you should look into one of the many S&P 500 indexes funds they offer. They all have a slightly different strategy. for example, higher dividend paying S&P stocks (vym) or growth stocks (voog, vug). Some are geared towards larger companies vs smaller companies.
Vanguard is a great way to go for the investor who is limited in the amount of research time they can put in. You can be adequately educated in only a few hours of reading the differences in the funds strategies. All the while being the least expensive option out there.
I think this is what you are looking for.
(investments may lose value, returns are not guaranteed)
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This is exactly what I was trying to say about Vanguard, but couldn't write as well as this.
Great post.