American Mutual Fund Class A
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Cheryl Said:
Investment advice? What investment advice would you have for the average class="highlight">American?We Answered:
If you are new at this, allocate 2 years' time to learning, plus enough money to last you through this learning period. As much as possible, limit your losses--meaning, if you are a long term investor, then weed out all positions that are in the red.Learn to think for yourself. If you have to ask someone if this stock or that is a good investment, go open a virtual trading account and trade that account until you can answer that question for yourself.
Keep a journal. Write down why a position is making money, and more importantly, why a position lost you some money and what lesson you learned and what you will do better next time.
Learn the difference between investing, speculating and gambling. Many people often find themselves doing one of the above when they intend to do the other.
Always keep your position size small.
There are a lot more, which I hope you will learn by the time you reach the end of that 2-year learning period.
Good luck with your efforts.
- Jim Syyap, Managed Forex Accounts
http://jsforex.blogspot.com
Geraldine Said:
Is this a good class="highlight">mutual class="highlight">fund to have? Franklin Templeton Class C founding funds?We Answered:
A mutual fund is meant to be a long-term investment; many funds have penalties if you sell them within a stated period of time. Generally, C shares have a 1% penalty if sold within a year of purchase.Did a broker sell you this fund? With a C share you are paying a 1% annual commission -- it's built into the expense of the fund. So if a broker sold it to you, you should get something for your money; call him up and ask questions.
If you are young and can leave the money invested, ignore the day-to-day changes in the market. Prices will probably fall further over the short-term but, frankly, if you're young, you can stay invested through a bear market, especially if the fund is paying a dividend, as this one must be, given the stock you say the fund holds. No one gets killed on a roller coaster unless they jump out of the car.
Eleanor Said:
How do i get out of Class B Load(back end) Funds?We Answered:
Back end load funds are going to give you a "hit" like the previous answer states...if you haven't held them for that period of time...which is typically anywhere from 4 to 7 yrs.But, don't assume you will always do better in a no load fund. I am a big fan of doing your research...and you get what you pay for...nothing is free...not even "no load" funds. Find a website that compares fund performance history. That will tell you a lot about what investments your in and any new investments your looking getting into.
I am a fan of the "C" share in which you pay as you go...if you will.
Just FYI..."A" shares are up front fee 4 to 8% typically
"B" shares are back end fees....first yr exit 8 to 7%...next yr 6 to 5%...next yr...3 to 2%...im sure you get the drift here.
"C" shares...you pay 1% when you go in and usually 1% annually as you carry the fund...
mind you...these are "guidelines" but that is kind of how they work.
Natalie Said:
are Americans who reside overseas second class citizens??We Answered:
Well, I hope not, 'cause I'm also an expat!Oh well, at least we don't have to queue at U.S. Embassies worldwide like other people do.
Victoria Said:
Roth IRA question?We Answered:
Executive Summary to your questions:1) No
2) Most probably
3) Depends
4) It is just a formality at certain investment houses. They are assigned to provide assistance where needed.
Your financial adviser has a conflict of interest and is perhaps not using the right measuring stick when telling you how well your investments are doing. He should be measuring your funds against the standard benchmark, the S&P500 index.
There is very little reason anymore for a small time investor (you and me) to buy anything but no-load funds. I am a big fan of index funds, especially S&P500 index funds. The funds have considerably lower fees and expenses since the fund managers are only trying to track the S&P500, not beat it. Frequently, just the fee savings coupled with the market return is enough to ensure you will beat the majority of actively managed funds.
Spend some time on finance.yahoo.com looking at fees of various funds. I guarantee you will be surprised by that variance in fees between actively manged funds and passive ones like index funds. Also, look in to Vanguard's index funds.