Quote:
Originally Posted by leftygrove
Looking to invest $2,000 in index funds on etrade.
Country: United States
Income: $40k to $50k annual
Risk Tolerance: High (plenty of savings)
Timeframe for investment: 5 years
Debt: None
I opened up an E-Trade brokerage account just to put some spare cash in index funds for a while. Any suggestions?
the minimum investment for vanguard index funds is $3k. however, most (all?) vanguard funds have an ETF equivalent with a much lower (no?) minimum. mutual funds and ETFs behave identically, for most purposes, but you'll want to understand the differences to see how they affect you.
assuming this $2k is your entire portfolio, i would recommend a target retirement fund (i think $2k is enough. there may even ben an ETF form of a TR fund somewhere). failing that, i would use ETFs to construct a simple 3-fund portfolio containing total bond market, total us stock, and total intl stock.