Mutual Funds Education
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Melvin Said:
How to determine which mutual or index funds are best to invest in?We Answered:
Its best to invest in an index funds because it has little or no management fees. Picking the right one depends on your style and risk tolerance. The SPY and IWM are good index that follow the S&P and Russell 2000.Vernon Said:
What a teen could do to ensure financial security at a very young age like before 30?We Answered:
This is coming from a 50 year old who wishes I had done this: enroll in your employer's 401(k) at the first opportunity and contribute as much as you can stand from every paycheck (EVERY paycheck), at least 10%, AND start a Roth IRA and contribute the maximum allowed each and every year. 401(k)s should be funded through payroll deduction; set up your Roth IRA the same way (either through your employer or through your bank where the Roth is funded by your checking or savings account). Setting up both accounts this way makes them automatic so you won't have to remember to contribute to them every payday or be tempted to skip some contributions. Keep doing this and the "miracle" of compound interest will make you financially secure when you retire (much younger than I can afford to). If you go into business for yourself you can still have a 401(k) account but there is a limit on yearly earnings that will disqualify you from IRAs. By age 30? The lottery or some fantastic invention you can sell for millions. Good luck on that.Jessie Said:
I want to invest Rs.1000 p.m on Mutual Fund for long term for my son's education?We Answered:
Better option is investment in Equity Diversified Mutual Funds through Systematic Investment Plan.Equity Diversified Mutual Funds are better managed than any other financial products available in market, research based, low expense, and returns can be expected at 20% CAGR (ie.Compounded Annualised Growth Return) year on year basis.
http://www.freemutualfunds.com/SIP.html
http://www.freemutualfunds.com/story5.ht…
If the tenure of your investment is less than five years then you must invest in MIP mutual funds.(MIP funds invest 85% money in debt instruments and 15% in Equity instruments) you can expect 8 to 10% retuns in MIP funds.
Recommended Funds are
http://www.freemutualfunds.com/best-fund…
Please feel free to contact me for forms and more information at
http://www.freemutualfunds.com/contact.h…
Sherry Said:
Should I go for child insurance (or) mutual funds?We Answered:
It completely depends where you live. Different countries tax things differently and some countries have programs set up specifically for children's education where the government matches what you put in.I don't know what you mean by a childs insurance plan, but the only type of insurance product that would be worth while to save for education would be universal Life policy where the investment portion would grow tax sheltered and then can be borrowed tax free out for the education. There are nay-sayers that say that U/L are a waste of money, but often times these people don't fully understand how they work or use facts from a long time ago when U/L products were not as good as they are now, since it is a very complicated product. I know many people that have used them as an investment vehicle and have made great returns.
To the person that said mutual funds are risky: You are seriously uninformed. There are various types of mutual funds out there and some are very safe and don't lose money. Also, given that the daughter is 1 month old it will be roughly 18 years before the money is needed...that is a HUGE amount of time to let the markets rise from their current low points. A mutual fund would provide a lower amount of risk than investing in stocks right now becuase they are well diversified.
You're best bet is to contact a lisensed broker who deals with insurance and investments. They will be able to review your options and make a recommendation that will best help you acheive your goals.
Darren Said:
What sort of education do I need to manage a mutual fund?We Answered:
You don't need an MBA, you merely need to be able to show people that you can work with numbers and have an ability to think critically. The Chartered Financial Analyst program is a great start, but to move through the program you need to find a company that will sponsor you. Most portfolio managers have worked for at least a few years in investment banking before moving to manage money; do a bit of math, finance, or economics in college, then try to find something interesting to do at a bank for a few years, then try to move over to the buy side once you have some experience.Matthew Said:
How do you invest for children's education fund?We Answered:
I have a financial planner to do that for me. They would evaluate your financial situation, needs and wants. Then they would suggest what is best suitable for you.Child education comes in few different types but mostly ppl would take one by Assurance company ie education fund and insurance, unit trust like education fund, plain education fund. There are funds that only be withdrawn on the expiry date, some from 15 yrs old on staggered basis and your payment could be paid right up to the period you committed or earlier.
Last by not least, you have to decide how much is enough for your kid by time he goes to U, (this could be stapulated by the insurance person based on which U and where) then you decide if you could effort to pay that premium.
If you cant afford on the premium on the sum insured you have chosen, get one that affordable to you. You can still buy another plan at the later stage and by then you have to re-evaluate the situation again.
I have several investments over a period of 15 years and that allowed me to roll my money and as one due for withdrawal, I start to reinvest into another plan. Remember the golden advise . ..money makes money, be patience you got plenty of time.
I am advising you this method assuming you are normal layman and not a filthy rich guy that could afford 1mil sum insured. If you do, you dont need YA right...buddy?
Just my 2 cts worth and hope you get more advice on this.
Ella Said:
What are some ways I could save money for my childrens college education?We Answered:
I wouldn't invest in any mutual fund or stock market account when it comes to anyone's future. Simple steps are all it takes to save more than enough money for college education and even a retirement.This is my own idea, but I would setup a savings account for each one of my children and make sure I start it off with a good lump sum of about 100 dollars. Make sure that the account has compounded interest (either monthly, quarterly, yearly, etc.), and a high interest rate.
To build it you simply set aside 10 dollars a week for each account to invest in. You could even go as low as 1 dollar a day! Every month each account would get 40 dollars. This isn't a lot but after a year you would have saved 520 dollars, and after 18 years it would be 9,360 dollars.
All of it starts to grow and grow, and when you apply the compounded monthly interest rate of even 3.5% it would seem as if your money was on steroids.
In the end you can go as high as you want to go when it comes to what you weekly set aside to put in the bank, even 20 dollars a week would equal 1,040 dollars a year plus the compounded interest.
Here is an example: I start with 100 dollars and put it into an interest bearing account that is compounded monthly; with an additional 1,040 dollars a year, each year for 18 years at 3.5%. After the 18th year I would end up with a ballpark number around 26,300 dollars!!!
That is the power of savings!!