Okay so I am having a hard time wrapping my head around the pros and cons of different ways to start setting a bit aside for a retirement investment. I have finally reached the point where I am able to set a bit extra aside and so I want to get a long term indexed market investment set up. I was hoping I could get a bit of advice.
My situation. I’m 32, my wife is a year older than me. We are looking to start small. I am self employed so traditional 401k and whatnot is out of the question, though I do have a small amount set aside in one from before I became self employed.
I want something with minimal fees and some liquidity so a Roth honestly seems like it’s out of the question (I am not looking for anything tax deferred right here. That’s something I have taken care of), but maybe there are advantages I am not seeing. And then I can’t really figure what the difference between an ETF and an indexed fund at Vanguard would be for me on a practical level. If they are both indexed to the S&P what’s the real difference (to me, I am pretty sure I understand how they function differently).
So what do you guys think? If you were going to start putting a bit into an investment fund, what would you choose?