On Jan 12, 4:57*pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
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I'm with Joe. 100% distrbuted among large, mid and small cap index
funds. Recently Fidelity cut their mgt fees for index funds.

Frank

what
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I have a Roth IRA also and a long-term horizon (40+ years). I put all
of it ($5k) in the Fidelity Emerging Markets Fund with ~1% expense
ratio. I also have Fidelity International Discovery Fund which I like.
You may also want to consider is VWO (Vanguard Emerging Markets) ETF
which has 0.2% expense ratio. I have a little bit in that as well.

With the US market indices tanking, i think there are good buying
opportunities (index funds as well) so i'm looking forward to
investing in them as well.

sandybeth wrote:

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Deposits have no such requirement, only the gains or money converted to
Roth. Is there any reason why they'd need to tap this money so soon? If
not, this should be invested for the long term and nearly all in stock
index funds.
JOE

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Yes, they both had enough earned income to cover the match.

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They are in their late 20's, and know about the 5-yr requirement.

I would not
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Already in Fidelity money market.

To clarify for others: Did you match the young adult
children's earned income with as much as is allowed in a
Roth for each? The earned income requirement can be
persnickety with kids.

Once these kids reach the age of majority, they can take
that money (less earnings) out at any time and spend it as
they wish, BTW. There is no five-year requirement, unless
you mean they are five years from the age of majority.

Make the kids use the various interactive tools free online
and figure out an allocation, I say. Tell them they don't do
it, then no Roth deposit.

Maybe you still choose the funds, but at least this might
introduce them to investing for the long run. I would not
rule out ETFs, either, especially Vanguard ones. Darn low
expenses at Vanguard.

With inheritance money, I started small Roth-IRAs for my 2 young-adult
children. They are with Fidelity and are currently in money market.
Assuming these young people don't cash them out in 5 years, what
Fidelity fund(s) are good for this purpose? I would like something
moderate that I don't have to monkey around with. Should I choose an
index fund or asset allocation?
SandyBeth