If you have a child or a grandchild in their 20s, listen to what I have to say.

The mutual fund industry is gearing up with funds targeted at 20-somethings to get them investing. American Century Investments has come out with My Whatever Fund that features an online coach.

The coach walks the young investor through savings strategies for a goal like buying a home, paying for a wedding or funding retirement. The cost of entry is low - only $500 up front and then $100 a month after that. The choices include asset allocation funds of varying degree of risk.

Charles Schwab offers a 15-minute IRA, and there are other companies offering 20-something investors a way to get started.

While I applaud the desire to start these young people on the road to saving, these types of plans can be a lot more expensive than buying indexed funds. And when expenses are high, funds have to work a lot harder to perform.

We hope this article was helpful. But if you'd like to read more on this - or a closely related - subject, just click here.