Quote:
Originally Posted by jimbo2012
My cousin, just turned 60, he's self employed no retirement plan in place at all, he wants to put $200 a month into something to have a little nest egg down the road.
Any ideas for this better late than never idea?
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If he does not have an emergency fund of probably 6 months to a year of expenses he should be in a saving account. Problem is they actually lose money since we are printing so much money now to keep interest rates low. If he wants to go to equity I would go to Vanguard (low fees) and a world wide fund that can invest in bonds or equity. Remember this is long term and he is not going to be taking the money out for at least 5 or more years. Even though he does not have a tax problem I would go to the ROTH. Other than the first 5 year rule on withdrawals of earnings he has nothing to lose and a possible gain by using the ROTH. I am also assuming he will stick with the investment and not sell when the market drops 10 or 20%.