I'm helping a friend roll over his 401K into an IRA. How can I advise him as he selects what to invest his money in? Factors I know to consider:
- Rate of return over 1, 3, 5, and 10 years (and Morningstar rating, yes or no?)
- Expense ratio
- Risk factors such as R squared
I realize there are appropriate asset allocations for each stage between bonds and stocks, etc. What else should my friend consider?