Looking for a fund for my Roth.

Hogan

I have a nice pension contribute to a 457(a) and I have a Roth but the Roth is with a relative. I can't move the money from the Roth until he retires. He is 75 thought he would be done by now but just don't want to go there. My pension is well funded my 457(a) has a good mix of stocks, bonds, international, and domestic. What I am looking for is one or two funds I can contribute to possibly for the rest of my working life--I may never need it--if I don't I can pass it on to my children. I don't want to pay a high ER. Any suggestions for a solid fund with good management--can be an index--can be a good balanced fund--target retirement doesn't excite me because I already will have a pension.

Investor

I am not sure I understand this right... Roth accounts are individual accounts. They are not shared like a bank account. If it is an account held at a Financial Institution for him/her, you don't have any legal claim. So, you have informal agreement.

Legally, when he cashes that out, if he/she gives you the money, he/she will be gifting to you and declare it to the IRS (well provided that it is done in a way according to the letter of the law).

From: http://www.mondaq.com/unitedstates/x/215816/inheritance+tax/Significant+Estate+Planning+Developments+in+2013

Gift Tax Exclusion. The Act makes permanent the unification of the gift and estate tax exclusion amounts. This means that in 2013 each person can make lifetime gifts up to $5.25 million without paying gift tax. However, all gifts that use a portion of this gift tax exclusion will reduce the donor's estate tax exclusion available at death. For example, if a parent makes a $2 million lifetime taxable gift to a child, the parent's remaining estate tax exclusion amount is reduced by $2 million at death.

The lifetime gift tax exclusion only applies to gifts in excess of the annual gift exclusion (i.e., the annual amount a person may gift to any person tax-free). For 2013, the annual gift exclusion is $14,000 per person (or $28,000 per married couple).

But I also do not understand why you are waiting for his retirement. He can get all the money from a Roth IRA without any penalty after 591/2. Or, is this a Roth 401k? Then, he might have to wait for retirement for funds to be available but again in a Roth IRA account, he can withdraw the money now without any penalties or taxes.

As for good funds you seek, I suggest you take a look at:

VWINX and GLRBX

MikeM

I agree with Investor that your description of the Roth is confusing. Either it belongs to you or it belongs to him. Are you maybe the beneficiary?

Anyway, as far as 1 or 2 funds; I like the VWINX suggestion (though I don't own it). A fund I have a lot of management confidence in is FPACX. It is one of my largest holdings. David Snowball had a few really nice Global Fund suggestions in his latest commentary. A well managed Global Fund might be what you are looking for. Good luck to you.

perpetual_Bull

"if I don't I can pass it on to my children"

Just the fact that you included this in your opening post...I'm venturing a guess that you may not need this money. If you do not need this money *I* would invest for my children's future. I would also spread the portfolio out a tad bit more than just 1 or 2 mutual funds.

You can build a rather nice portfolio for your children with four funds, imo.

FPACX, PRWCX, OAKBX, etc ( any one of these will work fine as your core holding )
ARTGX
MAPIX
PONDX

msf

Make that me three - I also couldn't parse the question. The best I could get out of it was something along the lines of: what's a good, inexpensive fund for an account that is likely to be passed to children?

That suggests to me a fund for the long term (multi-decade). Something like Vanguard Total World Stock (VTWSX, VT). Set and forget. For a domestic balanced fund, I might take Vanguard Wellington (VWELX) over Wellesley, again on the premise that you're not looking so much for income as for a legacy. Wellington is a great fund, but 40/60 equity/bonds - so it has a heavy income component. (In fact, its full name is Vanguard Wellesley Income Fund.)

Hogan

I knew people would get hung up with my existing Roth description--I hoped people could look past this incongruity. I own individual stocks in my Roth and my uncle is my stockbroker with Wells Fargo Advisors. I don't really want to own individual stocks at this point but the account has done quite well over the years but I want to move it eventually and I am waiting for him to retire--because he is family I won't move it even though it is my money. Thanks for the suggestions so far.