Thank you very much for your thoughts. I had thought of the S&P 500 or Vanguard's total market index. I think moving it each year with a contribution to Roth IRA is great idea. Keeps the money growing tax free. I go back and forth between mutual funds and ETFs, can't make up my mind, I read where ETFs are trading vehicles and mutual funds are more solid (less trading), investment vehicles. I read where John Bogle is not an ETF fan. Anyway, more issues to work through.

Sorry for your loss.
One thought for the inheritance:
Open a taxable account at the same institution (Fidelity, Vanguard, T. Rowe Price) as her Roth IRA.
Over the next few years she can make contributions from the taxable account into the Roth IRA. In ten years or so she will have an additional $50K in her Roth IRA and be well on her way to doing the same one day for her nieces and nephews (trump free...oops tax free).

Inside The 2016 Forbes 400: Facts And Figures About America's Richest People

#29 Abigail Johnson $13.2 B 54 Milton, MA money management
CEO of mutual fund giant Fidelity, with $1.8 trillion in assets. Abigail Johnson replaced her father, Edward "Ned" Johnson, III in 2014, and became the third-generation Johnson to lead the company. Her grandfather Edward Johnson II founded the company in 1946. Today Fidelity is the nation's second-largest mutual fund giant (behind Vanguard). Abigail worked summers at Fidelity throughout college. She joined the company full-time in 1988 as an analyst
#68 Edward Johnson, III. $7.1 B 86 Boston, MA money management
#76 Charles Schwab $6.6 B 79 Atherton, CA discount brokerage
#105 Charles Johnson $5 B 83 Palm Beach, FL money management
More Than 10% Of The Forbes 400 Are Immigrants, 14 Of Whom Are Richer Than Trump
#156 Donald Trump $3.7 B 70 New York, NY television, real estate
M* Founder
#321 Joe Mansueto $2.2 B 60 Chicago, IL investment research
#335 Ron Baron $2.1 B 73 New York, NY money management
http://www.forbes.com/forbes-400/list/4/#version:static

My 26-year old daughter received $50,000 inheritance from a deceased aunt. She is interested in investing it in a growth fund. She has a ROTH IRA account but this $50,000 would be in a taxable account. I was thinking of investing it in index funds or ETFs reaching for a diverse portfolio. I would very much appreciate any insights or advice from others on this matter regarding investing. All comments appreciated. Patrick

Worrying about a brokerage firm going belly up, especially one like Schwab, is not really warranted, Vintage. Your holdings are protected under SIPC, even cash up to a very high amount. The issue I have with the smaller firms (like Scottrade) is they are likely takeover targets, as we are now seeing. They may or may not provide great service to clients, but we should be mindful of the financial disadvantage under which they operate. Each company has some things we might really like and use a lot, but that can change pretty quickly. If, as many expect, a lot of active funds will be biting the dust in the next few years because of performance, lack of dollars, M&A, legal problems, etc., it might be prudent to look at what index funds and ETFs are available at the bigger custodians, not to mention expenses for each, trading costs, trading restrictions, and overall account expenses/fees, and technology available to customers. I am not saying your fears are unjustified. I am suggesting that all investors should understand the ever-smaller margins firms have to deal with and the probable decisions that result from that, especially the smaller custodians that each of us might like. Another factor in all this are the ever-expanding federal regulations forced upon all in the securities industry. Dodd-Frank was a killer, and the newer regs just get more and more numerous, no matter how redundant, unnecessary, and strange many of them are. They all cost firms mega dollars to enact, monitor, and report, not to mention the hundreds of hours and larger and larger compliance staff needed to oversee. Companies have to offset these ever-growing expenses somehow, whether it is higher fees to customers/clients or even deciding a merger/acquisition is a better option.
We deal with client account transfers on a daily basis, and it is still surprising the road blocks different custodians throw at account owners. Fees here, fees there. Fidelity's comment about not waiving a fee is baloney. This is just not true. But think what it means to Fidelity, a $50 fee times many thousands of accounts is a nice chunk of change, and that is just the tip of the iceberg for them.

Here's more.
Barron's

Am I missing something here. RIMIX appears to be an Asia concentrated fund, not a diversified EM fund. 95% in Asia? Then why not go with MAPIX, 96% Asia. Looks like comparable market cap. One is heavy China (RIMIX) the other Japan (MAPIX). Similar returns.
Good returns, but I guess I wouldn't hold it as my EM fund. And who need 2 EM funds ;)

https://www.sec.gov/Archives/edgar/data/831114/000110465916147921/a16-19259_1485apos.htm
Motley Fool Independence Fund
Motley Fool Great America Fund
Motley Fool Epic Voyage Fund

FYI: In keeping with our custom of removing funds from the Kip 25 if they shut to new investors, we must bid farewell to these two funds. Their replacements: Baron Emerging Markets (BEXFX) and T. Rowe Price Dividend Growth (PRDGX).
Regards,
Ted
http://www.kiplinger.com/article/investing/T033-C009-S003-2-new-funds-join-the-kiplinger-25.html
Kiplinger 25:
http://www.kiplinger.com/slideshow/investing/T033-S003-kiplinger-25-great-no-load-mutual-funds/index.html

Every step of the way, people haven't like the change. But 5 years down the road (or whatever it has been since FundAlarm) this site has only become better and more professional because of changes, much more content and easier to navigate. David, Chip and every commentary and software contributor, many many thanks... I love the new commentary format.

Howdy @linter
I do believe Fidelity will satisfy your request.
Side note: We've had accounts with Fidelity since the late 1970's. Several years ago we decided to take a decent profit in one sector and move monies into another sector. Twas' a busy day and I pulled a large sum of monies from the wrong fund (I'll name this "ticker brain fart"). The "wrong" fund from which the money was pulled had recently received money. This fund also had (if I recall properly) a 90 day short term trading fee attached at 3/4%. Several days later when I was reviewing our holdings I discovered the error and the .75% fee charged to the IRA account involved. I penned a short, gracious and courteous internal email to Fidelity about "my" error. Within the next business day they reversed the transaction and refunded the fee. I thanked them for their understanding in the matter and expressed that I would continue to recommend their organization to others regarding investments.
Regards,
Catch

thanks for that. i just sent the following to fidelity:
hey guys: i've been transferring money into my fidelity accounts, both regular and ira, and did not realize until today, when somebody told me, that the amounts qualify for transfer bonuses and i should definitely ask for them and get pretty upset if they are not forthcoming.
i transferred around xxxk in early june and around xxxk in mid september, which according to the bonus breakdown appended below should lead to a $900 bonus at the least.
i have substantial assets at scottrade that i'd like to bring over, too, but i want to see how you handle this matter first, because merrill lynch / boa is always another option :-). please let me know.
best,
xxxxxx
Bonus Breakdown:
Deposit $1,000,000+, and receive $2500
Deposit $500,000+, and receive $1200
Deposit $250,000+, and receive $600
Deposit $100,000+, and receive $300
Deposit $50,000+, and receive $200
xxxxxxxxxxxxxxxxxxxxxxxxxxx
we shall see!

hmmm. well, i just transfered well over 250k but far less than 1 mil to fidelity by closing out my wellstrade account and i did not to think of asking for a bonus. crap. think i should ask for one retroactively?
in the alternate, i have a big pile (for me) at scottrade. if i decide to transfer those assets to F, maybe i could ask for a bonus then and ask them to also take into account what i brought over from wells ...

Below is Fidelity's bonus breakdown. Also a link to all current offers as of October 1. Scroll down the link for the bonus offers. After reading this I am not transferring all my money to Fidelity Monday but just a partial. I can earn more than the $3750 they offered me by making partial transfers from Scottrade over the ensuing months.
Bonus Breakdown:
Deposit $1,000,000+, and receive $2500
Deposit $500,000+, and receive $1200
Deposit $250,000+, and receive $600
Deposit $100,000+, and receive $300
Deposit $50,000+, and receive $200
http://www.hustlermoneyblog.com/best-brokerage-bonuses/

hmmm. well, i just transfered well over 250k but far less than 1 mil to fidelity by closing out my wellstrade account and i did not to think of asking for a bonus. crap. think i should ask for one retroactively?
in the alternate, i have a big pile (for me) at scottrade. if i decide to transfer those assets to F, maybe i could ask for a bonus then and ask them to also take into account what i brought over from wells ...

FYI: A contrarian timing approach—emphasizing factors or strategies trading cheap relative to their own historical norms, and deemphasizing the more expensive factors or strategies—can improve performance, but should be used in moderation to avoid increasing portfolio risk from a loss of diversification.
•Contrarian timing is a form of value investing, but is not the same as doubling down on value risk. Relative valuation may support investing in the value factor when value is cheaply priced, and conversely, may indicate avoiding the value factor when it is expensive
Regards,
Ted
https://www.researchaffiliates.com/en_us/publications/articles/541_timing_smart_beta_strategies_of_course_buy_low_sell_high.html

I bought PRBLX b/c of its eclectic set of holdings and fairly solid history through several market cycles, not b/c it's an ESG fund. That said, I'm inclined to trim/liquidate for a bit to see how this plays out in the markets, even though it's "only" 5% of the fund. Plus it'll let me trim my equities a bit and free up some $$ to pay for my new car when it arrives. ;)

Sounds like a good plan. The point I was trying to make earlier is that accounting for E, S, and G risks (that's what they are) among others is part of the fund's risk management approach, and the risk management over the years is what's made the fund successful: running about with the markets in good times, and protecting the downside in bad times.
For sure, though, they blew it this time.

Were I the PRBLX manager I would dump them like a hot potato as soon as I could. As the old saying goes, there's never just one cockroach!
I bought PRBLX b/c of its eclectic set of holdings and fairly solid history through several market cycles, not b/c it's an ESG fund. That said, I'm inclined to trim/liquidate for a bit to see how this plays out in the markets, even though it's "only" 5% of the fund. Plus it'll let me trim my equities a bit and free up some $$ to pay for my new car when it arrives. ;)

If I had a million dollars, I wouldn't worry much about $2500 bonus :-D

@Junkster - can you tell me how Fidelity is providing $3,750 to your account? I'm currently in the process of transferring a rollover IRA to them and transferring a taxable account to them as well.
I know there offer commission free trades (but no discount for TF mutual fund purchases).
I would like to know more and speak with them again.

Below is the definitive thread on brokerage transfer bonuses. As for Fidelity they offer $2500 for a transfer of a million dollars. If you transfer more, you can bargain with them for more of a bonus. Free trades are of no interest to me. I was originally told my bonus would be just for transferring my IRA. But now found out it will be for transferring both my IRA and small taxable account from Scottrade. They will prorate the $3750 among the two accounts based on their sizes. As for how this bonus is handled (contribution, capital gain, taxes, etc, and other matters) see below.
https://www.bogleheads.org/forum/viewtopic.php?t=196884

FYI: Bond investor Tom Atteberry, who runs the FPA New Income fund, explains how he protects investors from the threat of rising rates.
Regards,
Ted
http://www.barrons.com/video/how-to-invest-in-a-bond-market-gone-crazy/048141A4-D100-468F-A5E5-F91F0A6D3654.html