molifeney.com

Mutual funds have come a long way since their introduction and one of the latest installments are lifestyle mutual funds. Lifestyle funds are great choices for retirement dollars such as 401k contributions or IRA contributions. These mutual funds allow the Portfolio manager to create a highly diversified Portfolio featuring a variety of stocks, bonds, international securities and sometimes real estate.  Many times it is difficult for investors to choose from the literally thousands of mutual funds available, it can be an overwhelming process.  These funds make it easy, you get instant Diversification with one mutual fund. You can either choose to have a fund that is diversified according to your personal risk tolerance like the American Century One Choice Portfolios. You can choose to have a mutual fund that is diversified according to when you will use the money. For example if you are planning to retire in 25 years or so, there is a mutual fund that corresponds with that time frame.  Additionally, the Portfolio managers will reallocate the Portfolio to make it slightly more conservative every year. This is exactly what you need because the shorter your time frame for using the money, the less risk you should take.  The Fidelity Freedom Funds and the Vanguard Target Portfolios are great choices.  Investing like this is easy and low-cost so go ahead and embrace change, you will be better off for it.

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