christopherwhitener wrote:My uncle has talked to me about starting for my retirement now, so that I have less to worry about when I reach my 70's. He told me an index fund would be the best option with a good rate of return, but less volatility, fees and surcharges than a mutual fund. By starting now and putting up 20% of my pay. I know it is not that much money at this time, but if I start now it will be in the end. I should be set with my pension and social security and any other benefits from my permanent job, once I finish school. I just want to make sure I have my own retirement plan set up, because my uncle says that you are not guaranteed a pension and 401k from corporations anymore. But what are some good index funds that I can look into and research. Also, what should I be looking for when choosing my fund. Please remember that I will be handling this fund on my own for the next 50 years. This is my personal retirement account, outside of anything any future employer may offer me. I watched Mr. Bogle on frontline with my uncle and I hope you can offer me some good advice for the future. Thank you.
Hello and welcome to the forum!
You are off to a great start and your uncle has done you a great favor in explaining the merits of starting a savings and investment program sooner rather than later. The key thing to remember is to save often, invest according to your ability, need and willingess to accept risk and to watch your expenses. I would recommend you borrow The Bogleheads Guide to Investing or The Little Book of Common Sense Investing (John Bogle) from the public library so you can understand the concepts of investing. Have you visited the wiki yet? http://www.bogleheads.org/wiki
It is chockfull of information on personal finance and investing (including retirement planning). A reasonable fund for you to use for your IRA would be one of the Target Retirement funds - low minimum of $1,000 to open the account - it is indexed and is well diversified with investments in the domestic and international equities markets and fixed income investments. The key to the Target Retirement fund is "you don't have to manage it" - it is managed for you, all you need to do is to save, invest and "stay the course" - you have a long time horizon in front of you before retirement comes.