The fund terran mentioned has a low expense ratio (0.12%) and aims to adjust things ~45 years from now as your friend approaches retirement. In one fund, it not only invests in U.S. and international stocks, but it moves towards bonds based on their age. Risk when it's the right choice, and safer bonds when that's the right choice. To stay invested in thousands of stocks around the world and various bonds, the fund consumes $1.20 per year on that $1,000 investment.