jgraham
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Location: west palm beach FL
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Hey guys, i read the book 'The Wealthy Barber' and i'm seriously considering buying mutual funds monthly. Im 18 years old, and desperately want to open the door for investing young. I just don't know where to begin. Where/How do I buy mutual funds, and in your opinion is it good to purchase the funds monthly, because there suppose to compound/stack? The book says that if you buy mutual funds monthly for about 15-20 years, you'll be very well off. any advice or ideas would be greatly appreciated,
thank you![/b]
Make gold work
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Sat Aug 28, 2010 2:01 am |
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Hosannakk
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Online investment is the best and easy way of investing. This type of investment has lot of facilities and benefits. You can apply through broker. The applying process is long and takes time. You should pass cheque and procedure is long. You can apply directly in banks. Still, it takes time. In online applying process, application form can be filled in online itself. Moreover, the form can be submitted immediately. It is mandatory to properly enter the personal information. Contact details must be clearly stated. If there is a mistake in address, email id, bank account number or phone number, there may be some problem. Security of money is very vital in mutual fund business.
Stock Exchange Updates
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Tue Aug 31, 2010 3:20 pm |
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oldguy
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Location: arizona
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quote:
and in your opinion is it good to purchase the funds monthly, because there suppose to compound/stack? The book says that if you buy mutual funds monthly for about 15-20 years, you'll be very well off.
You are on the right track. When Einstein was asked what the most powerful mathematical concept was he said 'compound interest'.
The equation has two main variables - 'rate' and 'time'. Here are two comparisons.
1. Rate: $10,000 invested at 6% for 30 yrs grows to $57,000. But $10,000 invested at 12% grows to $300,000. As you can see, doubling the rate gives you 5 times as much wealth.
2. Time: $10,000 invested at 12% for 30 yrs grows to $300,000. But that $10,000 invested at 12% for only 15 yrs grows to $55,000. So doubling the time gives you 5 times as much wealth.
The wealthy barber used both variables, he invested for several decades - and at moderate rates.
Investing monthly is the way to do it (it's called investing incrementally). And invest in moderate risk investments, no low risk, no high risk - moderation will win. That means no individual stocks where you can suffer from a company bankrupcy, you need a mutual fund that spreads the risk across several hundered companies.
The two major no-load fund companies are Fidelity and Vanguard. They have Target Funds that provide full diversification and re-allocation as you age. If they had been invented when I ws young, that is what I would have used.
As for goals & expectations - A $100/m investment for 30 yrs at 12% is $324,000. You can calcualte from that - eg, $500/m would be 5X, $1,600,000, $1000/m would be $3,240,000.
I maxed my 401k, it took about 14 yrs to get to about $1,000,000 when I retired.
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Wed Sep 01, 2010 3:35 pm |
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tchintat
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you are young,so you can afford the risk. I will suggest that you do the homework, purchase the stocks yourself. Of course, it also depend on how ambitious you are.
http://www.investors-journey.com
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Thu Sep 09, 2010 2:23 pm |
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StockInvestor
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Read the Random Walk Down Wall Street before you do anything 
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Fri Sep 10, 2010 9:38 am |
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Jackie101
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Thanks for the steps. When i was a newbie, even I was also wondering whether i would be able to make profit or not. But once I started getting good returns apart from my other investments, I was convinced that I made a right choice. As I made right decision, you can also get good returns by investing in the top 10 funds.
Recommended Sites for Forex:
http://www.ufxbank.com
http://dailyforexreview.com/
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Sat Sep 11, 2010 4:36 am |
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jgraham
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Location: west palm beach FL
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wow thanks for the replies guys, good information, i'm definitely going to keep doing my homework, and read more and more books about this, i want to be as prepared as possible when i jump in to trading.
Make gold work
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Sat Sep 11, 2010 11:57 pm |
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Saija
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The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. In the U.S., a fund registered with the Securities and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules must distribute nearly all of its net income and net realized gains from the sale of securities if any to its investors at least annually.
No fake signatures - thanks
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Fri Oct 22, 2010 5:19 am |
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Roksana
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Mutual funds may invest in many kinds of securities (subject to its investment objective as set forth in the fund's prospectus, which is the legal document under SEC laws which offers the funds for sale and contains a wealth of information about the fund). The most common securities purchased are cash or money market instruments, stocks, bonds, other mutual fund shares and more exotic instruments such as derivatives like forwards, futures, options and swaps.
south shore savings bank
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Tue Oct 26, 2010 7:47 am |
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rchris12320
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Work as many hours as you can and start investing little by little into mutual funds. Find a company that can give you advice for free.
Payday Loan Payday Loan Companies Cash Advance Loan
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Tue Oct 26, 2010 8:56 am |
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