Quote:
Originally Posted by captainofiron
the OER on mine is .78%
The investment guy I have been talking to here at my new job says that I should go with Mutual Funds since I am young (31)
and suggested some from Blackrock
specifically these
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If that's what you're comfortable with, then go for it. It's good that you're talking to a professional and listening to their advice. However, I would have encouraged you to ask a follow-up question of him, "why are mutual funds better suited for a "young" person of my age?". Then you can hopefully learn from his answer, helping you to become more informed about why you're doing what you're doing, or you can find out if he's feeding you a line of bull.
You and I are the same age, so I get where you're coming from. As a young person, you can afford to have stocks rise and fall quite a few times before you need the money. So the logic of using highly-diversified mutual funds for a young person seems a bit odd. For me, I also utilize commission-free ETFs in a rollover IRA because I know that over the course of 40 years of compounding, not losing out on ~1.0% a year in returns due to expenses can make a real difference in the ending balance.
In Greg terms, I would use the commission-free ETFs to "park" cash if you don't have a stock or other investment you're interested in.
As a reminder: we're not telling you what to do, just telling you what we do or how we think about things so you can learn.