Skip to Content
US Videos

3 Funds for IRA Contribution Season

Our analysts suggest a total stock market index fund, a foreign stock fund, and a TIPS bond fund for investors' portfolios.

Mentioned: , ,

Christine Benz: Hi, I'm Christine Benz for The first part of the year is IRA season because you have until your tax filing deadline, April 17 in 2018, to make an IRA contribution for the previous year. Doing so is a good way to accumulate additional tax-sheltered savings. The contribution limit for the 2017 tax year is the same as it was in years past: $5,500 if you are under age 50 and $6,500 if you are over 50.

If you have a time horizon of at least 10 years and you are looking for a core long-term holding that you will add to in the years ahead, it's hard to go wrong with a very inexpensive total stock market index fund or exchange-traded fund. Such funds don't require much oversight and have historically generated competitive returns relative to higher-cost actively managed funds.

Andrew Daniels has a position in the following securities mentioned above: DODFX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.