#1
|
|||
|
|||
Mutual Fund Thoughts: IDROX
I am looking to get people's opinions on IDROX - an ING Direct REIT based mutual fund. It has a short but rather successful performance history, and I was considering investing. My investment timeframe is somewhat open, but most likely I would be looking 12 - 36 months, but possibly longer. Bit more info about me below:
I am saving a decent chunk of cash month to month and all savings are sitting in a ING Direct savings at 4.5%, my savings have grown rather quickly I think I need to start earning more. I plan to keep about 8 months of expenses in the ing account as savings, and invest the rest in mutual fund(s). - Single, annual income in the high 60's living in major midwest city. Currently contributing 12.5% in direct retirement (6% 401k, 5% roth 401k, 1.5% 401k employer match). For those experienced or in a similar situation, any thoughts on my plans and if this fund is a good idea? Sorry to be so damn wordy, just wanted to include the background. |
#2
|
|||
|
|||
Re: Mutual Fund Thoughts: IDROX
I'd rather just buy a passive fund--VGSIX or VNQ the ETF share class. I highly doubt that IDROX will beat the index by 1%/yr in the long term. Also, its best to hold REITs in your 401ks--they are one of the most tax inefficient asset classes.
|
#3
|
|||
|
|||
Re: Mutual Fund Thoughts: IDROX
Thanks Jeff,
I'm not all that aware of the tax implications of owning REIS's, could you please elaborate? As I am buying a mutual fund my understanding is that any profit would be taxed the same as all other mutual funds despite the fact that this particular fund holds reit's. Could you elaborate if there is something I am unaware of? |
#4
|
|||
|
|||
Re: Mutual Fund Thoughts: IDROX
EGLRX is a better option fwiw
|
|
|