I have to disagree with a target fund. I own one for a part of my portfolio, but they are too formula-ized for me. Plus they make a fatal assumption that bonds are "safe" and keep a certain percentage in bond funds. Bonds are going to be in for a rough ride in the next 3 years or so as interest rates start to go up, because principles will go down. You may lose 5% in the bond fund component in 2015 which doesn't seem like a big deal, but at a 4% interest rate it will take you over a year to get back to even.
Now what I say may sound contradictory. But I suggest 4 core index funds. Use these 4 Vanguard index mutual funds: (1) Total market bond index - I know I just said bonds may be dangerous, so if you buy this, you should keep an eye on interest rates, and if they start to rise significantly in 2015, trade this fund in for a small cap index fund, (2) Vanguard 500 index fund, this tracks the 500 highest cap companies in the US markets, (3) Dividend index fund, these are stocks that pay good dividends, and (4) The European index fund, or an international equity index fund. I like Europe because it is in the crapper and has good upside in the next few years.
TRRHX
That's T Rowe target 2025. One fund. asset allocated and managed professionally. Perfectly simmered for 10 years.
I wouldn't. I'd buy real estate.
If you had $10K to invest in stocks/mutual funds where would you invest it today if you had 10 years to leave it there?
