Birgit Kuester January 18, 2020 Mutual Fund
Seek consistency Evaluate a mutual fund`s performance beyond just the recent year. Any fund can get lucky, but it`s the rare firm that prove themselves year after year. Examining a fund`s long term performance can answer the question of consistency. If the performance was good, was it repeatable due to skill - or merely a spike due to dumb luck?
Index Funds Of course for many of us, our primary investment vehicles are index funds. These are funds which are designed to match the performance of a major stock index. This takes the decision making away from a money manager. It also makes deciding on a fund very easy. If I want to match the market, I simply buy the index I want to match and move on with my life. In many ways this is a win-win.
Spreadsheets & Formulas I have known plenty of investors who have invested extensive time, money and research into choosing their mutual funds. They have devised their own systems, using complex formulas and spreadsheets to allow them to make the right choice about their mutual funds. Ultimately however, this begs the question: If you have to do all this research, why are you buying mutual funds in the first place? For the amount of time you are spending on your decisions, you could buy individual stocks and not pay a money manager a fee.
However, having real property as an investment does not mean you do not manage it. What do I mean? You have to be responsible and manage your equity that your home accrues and if you have investment properties, you have to manage those properties like an investment portfolio with precision planning so that it does not create a negative cash flow because cash is king. In the business world, businesses that fail to manage their cash flow properly often fail to survive. Similarly, where individuals or families fail to manage their cash flows properly they end up in the same place, bankruptcy court.
While it does not help the employee`s current tax situation, funds that were contributed on an after-tax basis may be easier to withdraw since they are not subject to the strict IRS rules which apply to pre-tax contributions. It does not include any matching funds that the employer might graciously throw in. Because every penny taken in the form of expenses is at least a nickel you will not have in retirement, you want low-cost funds. If these conditions are met, the funds can be withdrawn and used for one of the following five purposes.
Watch the indexes, and watch your funds if they have symbols. Fixed Funds Fixed Funds, sometimes called Guaranteed Funds, are known for steady, predictable growth in the long term. They carry Guaranteed Interest Contracts underwritten by insurance companies, and because of that fact are commonly considered very low risk funds. This includes the additional protection of the funds from garnishment or attachment by creditors or assigned to anyone else, except in the case of domestic relations court cases dealing with divorce decree or child support orders QDROs; i e , qualified domestic relations orders .
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