Considering mutual fund

[GwalchmaiParticipant 43]

I am getting close to paying off my debt, i already invest in silver and a little gold. But once my debt is payed i will have allot more to invest and since i have no drive to fully understand the stock market is a mutual fund a good idea?

I also do not want to stay in one city so property investment is just not the best investment for me at this time.

Gwal

[Anonymous 0]

Gwalchmai wrote:

I am getting close to paying off my debt, i already invest in silver and a little gold. But once my debt is payed i will have allot more to invest and since i have no drive to fully understand the stock market is a mutual fund a good idea?

I also do not want to stay in one city so property investment is just not the best investment for me at this time.

Yes, if you want to invest in the stock market, then a mutual fund is the way to go.

Here’s an old post of mine from 6 months ago. It tells what kinds of mutual funds to invest in, what to look for (low expense ratio), and all that stuff. Link: /forums/topic/investment-ideas-for-beginners/#post-253989

[BeerParticipant 11832]

I’d do a little research and just buy individual stocks over a mutual fund any day. Mutual funds are going to charge you a % fee…once you start building up a decent amount of money they become quite expensive. Why pay the middle man when if you like a specific fund you can just research what some of their major holdings are and buy them on your own? Always seemed like a waste to me when win or lose those blood suckers are going to skim a % off you.

[Anonymous 0]

Beer wrote:

I’d do a little research and just buy individual stocks over a mutual fund any day. Mutual funds are going to charge you a % fee…once you start building up a decent amount of money they become quite expensive. Why pay the middle man when if you like a specific fund you can just research what some of their major holdings are and buy them on your own? Always seemed like a waste to me when win or lose those blood suckers are going to skim a % off you.

Mutual funds are the beginner’s way into the stock market. OP said he had no drive to study up on the stock market. So the quick way in for beginners is through mutual funds. Mutual funds offer diversification by investing in a broad array of stocks, so the beginner doesn’t have to do a lot of studying up and then monitoring and managing individual stocks.

As I pointed out in my linked post, index funds have very low fees, and they provide the greatest diversification. Granted, an index fund won’t rise as fast as a well-picked individual stock. But they mirror the movement of the stock market as a whole, and a beginner will probably be happy with that rather than have to do a lot of studying and take on a lot of risk. They’re also very liquid–quick and easy to get in or cash out.

[Anonymous 43]

no load
low tax
total market fund
DRIP.

Find an investment person.

Look at statements once in a great while. Do not fiddle with it unless a huge change in life.

Do not. Do not . Do not attempt market timing.

[Mr.KraftParticipant 236]

Stock index funds mate. Just roll with those. Thats all you need.

Do not invest into precious metals.

[BeerParticipant 11832]

Anonymous wrote:

Mutual funds are the beginner’s way into the stock market. OP said he had no drive to study up on the stock market.

He said he had no drive to fully understand, which is fair enough because I don’t think anyone fully understands it lol. Look it took me about 10 seconds worth of google to find this link, and clicking on the annual report gives a break down of how much of what stock each of their funds owns.

http://www.oakmark.com/Literature–Forms/Prospectus.htm

You can find this information for any fund out there. If you want to go mutual fund route pick a fund you like, see what they buy(which realistically you should be doing before you hand anyone your cash anyhow), start buying individual stock on your own, and you can set your portfolio up over time to look just like their mutual fund. 8 dollars a trade or whatever is going to be a hell of a lot cheaper in the long run than paying some money manager probably somewhere in the realm of 0.25 to 1% a year. There is really no reason to pay these leeches unless you have money in a 401k with limited options.

[GwalchmaiParticipant 43]

Mr.Kraft wrote:

Do not invest into precious metals.

Precious metals are guaranteed to keep up with inflation if not do better due the overuse and disposal of silver especially. I will continue to buy gold and silver. But index funds seems like a good way to go for another investment thanks.

Gwal

[ShinyParticipant 2307]

Anonymous wrote:

Beer wrote:

I’d do a little research and just buy individual stocks over a mutual fund any day. Mutual funds are going to charge you a % fee…once you start building up a decent amount of money they become quite expensive. Why pay the middle man when if you like a specific fund you can just research what some of their major holdings are and buy them on your own? Always seemed like a waste to me when win or lose those blood suckers are going to skim a % off you.

Mutual funds are the beginner’s way into the stock market. OP said he had no drive to study up on the stock market. So the quick way in for beginners is through mutual funds. Mutual funds offer diversification by investing in a broad array of stocks, so the beginner doesn’t have to do a lot of studying up and then monitoring and managing individual stocks.

As I pointed out in my linked post, index funds have very low fees, and they provide the greatest diversification. Granted, an index fund won’t rise as fast as a well-picked individual stock. But they mirror the movement of the stock market as a whole, and a beginner will probably be happy with that rather than have to do a lot of studying and take on a lot of risk. They’re also very liquid–quick and easy to get in or cash out.

An index fund is definitely the way to go. Anything else is just gambling, no matter how it’s dressed up (gambling can be fun, and profitable, but never call it by another name).

Hedge your position with precious metals.

[BeerParticipant 11832]

Shiny wrote:

An index fund is definitely the way to go. Anything else is just gambling, no matter how it’s dressed up (gambling can be fun, and profitable, but never call it by another name).

Don’t kid yourself into thinking index funds are any different. When people suggest index funds as the “safe” market investment its because they also suggest putting money in consistently over time and staying invested for the long haul…but for a long term outlook those second two pieces are probably far more vital than simply picking an index fund.

[foghornleghornParticipant 3449]

Index funds as have been noted by some others are the way to go for you. Do not risk money purchasing individual stocks. One suggestion would be to look at the three fund portfolio approach suggested by Vanguard founder John Bogle, a rudimentary explanation can be found here – https://www.bogleheads.org/wiki/Three-fund_portfolio. As stated by others, make sure you are looking at index funds, funds that do not have a lot of turnover and preferably funds that provide a decent amount of dividends.

[hollowtipsParticipant 681]

Based on what my older brother told me mutual funds are slow as hell. He invested some cash into them thinking in a couple years it would grow to help him cover his student loan monthly payment but the interest is garbage. Safe stock tends to be really weak growth and returns. It might make a good base but don’t bet to much on it.

[Y_Participant 4591]

If you do not know the markets – DO NOT PLAY.

Mutual funds are probably the riskiest as they are tied to 401K pension schemes which are now in trouble. Beware.

Get expert advice first and learn what you can lose before you invest. You need a one to one time with a professional but know what it is you are buying.

Never invest any more than you can afford to lose.

Understand what your goals are + what options you have + risk in each option

If you don’t want to do this personally get a GOOD and TRUSTWORTHY investment manager. Check him out 100% first and start small.

Always keep tabs on where you are financially.

Remember once you invest you do not have currency – you have financial instruments that have a certain value.

Gold and silver are GOOD but know your limits with both.

[RealityBitesParticipant 2198]

Vanguard Index Funds
VFIAX or VFINX – these track the S&P500 they are both the same except the former charges less money in administrative fees but requires more initial investment.

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