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AARP’s Getting Into the Mutual Fund Business
By JLP | May 3, 2006
Here’s some interesting news: AARP is getting into the mutual fund business. According to this article (may require free registration) on the Index Universe website, AARP will offer the following portfolios based on the MSCI Investable Market 2500 Index (U.S.), MSCI EAFE Index (International), and the Lehman Aggregate Bond Index (click here for definitions of each index):
The Conservative Fund:
75% bonds
20% U.S. stocks
5% percent International stocks
The Moderate Fund:
50% bonds
40% U.S. stocks
10% International stocks
The Aggressive Fund:
25% bonds
60% U.S. stocks
15% International stocks
All three funds will be no-load with a 2% redemption fee if the funds are sold within 60 days of purchase and will carry a management expense of .50% (that compares to Vanguard’s Total Retirement Funds’ expenses of less than .25%). Of course, expenses could come down in the future if the funds gather enough assets. However, AARP has been known to take advantage of their membership so I wouldn’t count on the expenses coming down.
Here’s the AARP’s mutual fund page.
Topics: Index Funds, Investing, Mutual Funds, Retirement Planning | 2 Comments »
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