Top 10 Mutual Funds for Millennials

Update: Read 2018’s 10 Best Mutual Funds for Millennials

Suggested Reading: Best Smart Beta ETFs for 2018

Become a Millennial Millionaire

Millennials, are you looking to become financially independent, and eventually a wealthy ‘Millennial Millionaire‘? We’re extremely lucky to be at an age where compound interest makes all of that way more attainable than most Millennials believe. Regardless of your income.

If you invest in a low-cost mutual fund via dollar-cost averaging, e.g. investing regularly (month, weekly, bi-weekly) then you’re on one of the surest paths to wealth. But you have to start investing now. The best time to plant a tree was 20 years ago…the next best time is today. Same goes for investing. Millennials should begin investing right now and make saving regularly a habit, e.g. pay yourself first, always.

10 Best Mutual Funds for a Millennial

  1. Target Date Retirement Funds (2045, 2050, 2055, 2060)
  2. Total Stock Market Index Fund (VTSAX)
  3. 500 Index Fund (VFIAX)
  4. Small-Cap Value Index Fund (VSIAX)
  5. LifeStrategy Growth (VASGX)
  6. Vanguard Total International Stock Index Fund (VTIAX)
  7. Emerging Markets Stock Index Fund (VEMAX)
  8. Value Index Fund (VVIAX)
  9. Small-Cap Index Fund (VSMAX)
  10. Intermediate-Term Bond Index Fund (VBILX)

My aforementioned list of the top 10 mutual funds for a Millennial is made up of all Vanguard funds. I absolutely love Vanguard and their funds, which are the lowest cost funds out there. Keeping your fund expenses low is extremely importing, and that’s what Vanguard has set up to do.

Index Funds for Millennials

Of the 10 funds listed, 8 are index funds. The Target Retirement funds are not “index” funds, however they are comprised of 3 index funds to create one fund. The LifeStrategy fund is the exact same concept. Its comprised of 4 index funds and stays steady at an 80% stock / 20% bond asset allocation, whereas a Target Date fund adjusts to be more conservative and increase your bond allocation as time goes on and you get closer to retirement.

All of the Vanguard mutual funds are fantastic standalone funds you can use in your retirement portfolio. The only fund listed that I would never invest 100% on my assets in is the Intermediate-Term Bond Index Fund. That is to supplement another fund listed. For example, you could invest 85% in the Total Stock Market Index Fund, and then 15% in the Intermediate-Term Bond. The first fund is really interchangeable.

Millennials, today is the day to begin investing for your future. Invest today so you can become a wealthy, financially independent ‘Millennial Millionaire’ tomorrow. But you have to start investing in mutual funds now. I would recommend opening a brokerage account with Vanguard, Schwab or Fidelity.

Update: Read 2018’s 10 Best Mutual Funds for Millennials

Suggested Reading: Best Smart Beta ETFs for 2018

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