Retirement Fund Investment
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Alice Said:
Is it a good investment plan to get both an IRA and a target date retirement fund?We Answered:
I regularly report those spammers who show up here---really ticks me off.Any investment plan can be worthwhile so long as it takes your risk tolerance into account along with equity selections that have a reasonable chance of enabling you to meet your financial goals. Retirement funds are ordinarily designed for people who may compare in general terms to you in at least some basic ways. If we're talking about an investment vehicle built by Schwab or Fidelity or a host of other investment houses posing as brokerages, then you're at the mercy of in-house propaganda specialists. I have absolutely never embraced any of these for I've never been convinced of their being anything but self-serving. There can be front loads, 12-b 1's, maintenance fees and even some little guys posing as unimportant incidental fees common to all such accounts---but you know something? This is my money they're using and it's going to be supporting someone other than myself and I resent that.
IRA's make all the sense in the world for a variety of reasons, not the least of which is the freedom for profits to compound year in and year out and I'm free to withdraw when my taxability rate will be lower---although I'm not convinced of that fact, given current Administration attempts to tax seniors in new ways that will damage returns.
If you are young enough to get involved in self management and have the courage, intellect and detail orientation to try it---and yourself---out, let me suggest you take a small amount of money and set up a brokerage account with Ameritrade or another discount broker that operates without restrictions. Schwab and Fidelity, for example, will not let you invest in certain penny stocks because the trades would likely trigger red flags owing to a failure to meet SEC rules. I use Ameritrade and am free to trade as I wish without anyone overseeing my decision-making.
You could take just a couple of thousand $ for this---and then read the newspaper. Make a list of subjects you find especially interesting---ones that have you looking for more articles on the same subject. (s) I'll give you an example: In 1995, Texas was considering deregulating electricity providers. It struck me that I might make a buck or two by learning more about that as it was obvious someone always profits when the rule of the game change. Why couldn't I prosper too?
I pulled together $84,000 and in three years built it to $713K. But I became a specialist in energy trading and that proved to be more important. You see, I lost my vision for more than four years. Following multiple surgeries, I returned to trading and rebuilt my portfolios, exceeding earlier gains that were used for hospital and recovery expenses. Today I'm an energy trader while also trading in Chinese utilities and agriculture companies.
Thus, it's my knowledge of the stock market and determination to manage my life that has resurrected my life---financially, occupationally and more important than anything else---emotionally. Many things can serve you well when investing---but you are the only one who will take great pains to preserve your capital structure and think things through in order to open fresh opportunities. Packaged plans have their place but in the end, they tend to serve the promoter of such plans more than those who fund them.
There is only one sure way to trust your retirement program and that will be through your own increasing knowledge of what you expose your savings to, the level of acceptable risk and your growing body of knowledge. There's a whole lot of folks working as greeters at Wal-Mart...and a lot of them wish they'd been advised to take control of their finances way back when.
Now---I don't want to see you greeting me any time soon! Get crackin'............
Steve Said:
whatis the best investment fund for retirement?We Answered:
I have IDEX fund whick has an annual return of 8-9%. check it out.Pedro Said:
Which is best,buy an annunity or invest with an investment group(established) for your retirement?We Answered:
An annuity is guaranteed. Basically you buy an annuity with your pension pot and it is paid back to you annually(split monthly) or until you die(?) This is why it is called an annuity.Edgar Said:
Whats a good investment fund , an aggressive fund , I would like to start investing for retirement.?We Answered:
There are a lot of good sites to learn about investing. Definitely look into more than one.You have a lot of time to allow your money to grow. If you consistently put $500 into your account, whether the market is doing well or not, you will be very happy in 30 years. At that time you will easily be able to decide if you want to retire or just keep working.
Look into the long term results of your investments. Mutual funds buy and sell stocks every year. By investing money in these funds, you are putting your trust in the fund's management to choose the right companies each year.
Make sure to diversify your choices, a good portfolio would be broken up this way:
35% US growth
30% US Value
35% Global or International
GOOD LUCK!!!
Carrie Said:
Should I wait to invest my 30k in a target retirement fund until the market comes back maybe next year?We Answered:
You should consider investing 30k over a peropd of time by dollar cost averaging. you may choose to put in certain percentage on a monthly basis.as to where to invest, it all depends on your time horizon till retirement. target retirement funds are a good choice. you can invest in one of the funds with target date that closely matches your retirement year. funds from vanguard, t rowe price are pretty good.
other fund options would be to invet in balance funds: oakmark equity income, vanguard wellington, t rowe price capital appreciation are fine choices.
Billie Said:
Is it wrong to fund retirement and investments while I still have student loan debt?We Answered:
If your student loan rate is low enough (and yours is) this is a good idea. Even better if you sign up for a 401K with a match by your employer.James Said:
Use 30yr mortgage to fund mutual fund investment/retirement?We Answered:
Don't do it!First of all, a "conservative" mutual fund will *not* return a "modest" 8% return. The overall S&P 500 can be expected to return around 8%. If you're looking for "conservative" you'll need to sacrifice returns in order to reduce volatility. That's neither good nor bad - I'm just trying to illustrate the trade-off of volatility and performance.
Home prices are already falling. If you take cash out of your equity, you risk eventually becoming "upside down" - owing more than your house is worth.
Now, suppose the current recession deepens. Not only might you be upside down on your mortgage, your investments have lost money, too.
Do you think that's okay because, after awhile, the stock market will recover and your investments will climb again? No!
Here comes the double whammy: at the same time your home and investments are losing value, the ailing economy may cost you your job (or severely cut back on your income). Your income is reduced, but you already stretched your budget by taking on a higher mortgage payment. Suddenly, you're selling your investments at a depressed price in order to make your mortgage payment. In other words, you're selling your stocks before they've had a chance to recover. Yikes!
I can't imagine someone seeking a "conservative" mutual fund would take on something this risky. There's a chance this plan could work, but don't bet your home on it!
It might make sense to stop prepaying your mortgage and sock that $500 each month into a low-cost, no-load mutual fund (Vanguard Total Market Index comes to mind). If you're looking for leverage, considering buying ETFs in a brokerage account and buy on margin (a margin loan, like a home loan, is tax deductible). Even margin is risky, but there are no monthly payments as long as your equity balance is high enough.
Don't borrow against your house to invest in stocks. You'll sleep better at night.