He probably invested in penny stocks.

....Do you know what penny stock means?

Ill tell you what it doesnt mean, and thats $200/share.

Next time invest in a vanguard total stock market index, and put 10-20% into a vanguard total bond index fund.

Don't go into a "targeted retirement age" fund. Don't skimp on bonds. Don't go into peer-to-peer lending. Don't cherry pick stocks or time the market. DO NOT GO WITH ANY MANAGED FUNDS, that's the most important.

Index funds are boring.
Bonds are absolute shit.
Meh.

That fund you mentioned historically has a shitty return but since 2009 its been bumpin. Wouldve been nice to throw 20K at it right after the crash heh.

The vanguard TSMI has the lowest expenses of any fund in existence, unless one has been recently made that is lower. Several percentage points beneath managed funds.

Given the low expenses and compounding interest, as well as dividends going back in, inside of a Roth IRA, it follows the Rule of 72 closely. That's really all you can ask for from a sound investment.

Bond gains are shit, but bonds aren't for gains, they are risk management. At a young age something like 10-20% is a good way to manage risk, at retirement age closer to 50-60% in bonds would be better. All they really need to do is equal or out-earn a static savings account to be effective.

This post was edited by thesnipa on Mar 13 2017 11:54am

Im an aggressive growth investor, 100% equity is fine by me

When I did planning for my clients I generally told the rule of thumb is whatever your age is is what % of your portfolio should be in fixed income investments, not necessarily just bonds, but any fixed income is risk mitigating.

And I agree a low MER can definitely help your long term gains, but there are some actively managed funds that out perform indexed funds even after the cost, so I'd say your strategy is correct about 80% of the time and for 80% of people. I personally normally follow a more aggressive strategy, though im currently in all fixed income since im looking at buying a house. I dont want anything to go wrong with my down payment xD

I should clarify my posts have been directed at the OP, who says they're a beginner investor. The low expense funds and bond funds are just for simplicity sake for someone who's entirely ignorant, and in that it's assumed they would instead go after a big box managed fund with high expenses. Likely after seeing some random Chuck Schwabb commercial or something. People often see gains as the only metric, and end up gaining half of what they could have with an equally simple approach.

If you're knowledgeable enough to pick stocks and time the bond markets that will yield more. I'm only semi knowledgeable of investing and will still only ever follow my approach, just for simplicity, and worry and focus on other things. I have a VERY small portfolio of picked stocks, but its more of a hobby than actual gainful investing.

This post was edited by thesnipa on Mar 13 2017 12:06pm

Lold more at the idea of takesies backsies

Kudos for clarifying, for a beginning investor your recommendations are spot on.