Have to select a fund for a Simple IRA Fund? Head about to explode!?

My husband has an opportunity to invest in a Simple IRA Fund with his employer, who will match my husband's contributions (maximum 3%). We can choose between growth funds, growth and income funds, equity income funds, balanced fund, bond funds and money market funds. We're looking to retire in 10 to 15 years...I'm reading the prospectus and my head is about to explode. What are the most important considerations in selecting a fund? What's considered acceptable / good growth? What should we avoid?

With 10-15 years to go , safety is one of your "most important considerations"...so I suggest you go with the balanced fund for a major percentage ( 66 to 75) of your investment. Then with what you've got left split it between growth and equity income.
( You're playing catch-up with those ... hoping for over 12 or 15%
your "core" fund ( the balanced) just keeps chugging along ( you hope ) at 7 to 10.
If you can't decide, you can put it in the balanced...then take your time reading up, researching, etc...and change funds along the way.
Yahoo/ finance and msn/moneycentral both have tutorials about investing...just click on funds.
Your "head" will be fine after you learn a few terms and what to expect in the way of returns. Relax, it's not brain surgery...and millions of Americans have figured it out ( When you walk down the street and look around you, don't you figure you're at least as smart as the lady in pajama bottoms and the guy with the comb-over?)

Your investment time frame is relatively short. As sure you are more risk adverse then someone looking to retire in say 30 years.

I would say you should look into the blended funds, income and grow are still your primary goals at this point.

I am guessing your not ready to be heavily into bonds yet.

So say with the middle specrum funds. Still trying to achieve moderate growth but without the risk of a more speculative growth fund.

Hope that helps, the account manager should offer some advice or direction.

It can be a rather daughting task indeed. 10 to 15 years is far enough into the future that an equity fund will provide you with the best opportunity for a relatively good return. The most important consideration is the level of risk you are willing to take.

Most risk--growth fund. They are very very volitile.
moderate risk--equity income fund
less risk--balanced fund.

Bond fund is to be avoided. They are not good investment vehicles.

Money market fund--least risk and least return potential.

growth and income fund--??? That is sort of an oxymoron. Not sure what it is.

Either the balance fund or the equity income fund would be relatively conservative vehicles for your retirement funds that also promise a decent long term return. I would avoid the growth fund quite frankly. When the market drops, growth funds tend to plumet. Growth funds have yet to recover from 2000. That was 7 years ago. Balanced funds and equity income funds hardly missed a beat and they are now way ahead of growth funds performance wise.

Oh, just like an insurance policy, what the large print gives, the small print takes away. Oh, well, there's a couple of funds linked below that might be interesting to some reader.

Do a mix, if permitted. I have only a slightly longer time frame than you and with my TIAA-CREF I have a large part for the basic annuity, a good real estate investment trust (their REIT is quite good), and two in stocks (regular stock and global) and two in bonds (regular bond and Inflation-Protected Treasuries, commonly called TIPs). With this mix I cover most of the bases with some advantage to simple security. I also change the emphasis, as my program permits (I bet yours does too), so when my stock fund stinks, I change the percentages so that I squeeze off money flowing there and put it somewhere else (the REIT has a bigger share now because it makes more money than their stock fund did when last I changed things).

From your list, not knowing any more, I would choose three if I could: (1) the "growth and income fund", (2) the "balanced fund", and (3) "bond fund"--then leave it alone.

look for a middle of the road fund that isnt too conservative and isnt too risky- make sure to contribute at least the 3% that your employer will match

10-15yrs is actually a fairly long time. Usually there is someone- either the broker/and or firm(Simple Custodian) should help. Also there are several allocations questions that help you determine a portfolio mix. I would say if this is stressing you out ask a friend for a rec on a financial planner. I agree to stay away from bonds/money market for the time being. They have a place in a portfolio just not yet. Many plans also offer a flexible portfolio based on age etc.