Are mutual funds good investments?
Answers: It really depends on the mutual fund you choose. What mutual funds really provide is investment diversity for the investor who does not have the time/inclination/information/resources to diversify his or her own portfolio. Mutual funds therefore do not usually provide the same explosive growth potential that individual stocks may (if you invest $100 in XYZ and XYZ then discovers a cure for cancer---odds are your $100 would grow to $10000 almost overnight), they also provide far greater stability (if instead of a cure for cancer, XYZ were found to have produced toys with lead in them---your $100 dollar investment may now be worth only $10...a Mutual Fund on the other hand, if it was invested in XYZ would in all likelihood only take a small hit from the crash of XYZs stock).
Of course---with all of that said, there are a ton of Mutual Funds out there, some investing in high risk ventures, others with much more conservative investments---so the best advice would be to identify your investment goals (quick score, long term investment, investing for your retirement), and if you cannot consult an expert---at least do the research and find a Fund that has a portfolio that matches up with your investment goals.
They are great for diversification, but certain ones can be very risky, certain ones can be very conservative
Get a financial advisor, and see where your risk tolerance falls.
The answer to that would be the same as "do cars run well?"
It could be "yes" and it could be "no." There are thousands of different mutual funds that invest in a LOT of different companies - some small, some large - and in a LOT of other commodities ranging from precious metals to real estate to currency to just about everything else.
For MOST people, investing in INDEX FUNDS are the best bet. Do some research and find a financial advisor who will make recommendations to you FOR A FEE (yes - pay a fee!). STAY AWAY from financial advisors who work on commission (rarely are they going to recommend low cost funds as they have a vested interest in higher cost / higher fee products).
Good luck and I hope this helps!
I believe they are. Since I don't have the knowledge or timing of Buffet or Trump, I'll stick with them.
and...As they always say...don't keep all your eggs in one basket(why have all your money in one stock when you can be in many).
This pertains to younger people. I wouldn't reccomend all mutual funds for the 50 and older crowd.
Mutual Funds are unique tool to accumulate wealth over time. By subscribing to a good Fund's systematic investment plan you can reduce the risk and enhance the risk adjusted return over a period of time. This is not recommended for the jetsetter who are in a hurry to burn their money. it is a patience game played with determined discipline.
Are ira's a good investment?
Answers: Yes they are, depending on the stocks you put in them.
I'd recommend against buying these:
http://www.bofads.com/stories/stocks.htm
An IRA is just a wrapper for investments slated for retiremenet. Within an IRA you can invest in CDs, mutual funds, stocks real estate, etc.
An IRA could be good or bad depending on what you do within it.
IRAs are a good investment but not the only investment that is good.the reason why your standard IRA and Keogh are good investments is that they take your pretax-ed money and put it into a safe harbor until you are at least 59 1/2 years so that it can generate income without being taxed until you start taking it out..that makes you a lot of money...
now if Congress had left our social security alone and not embezzled from it we would all retire close to millionaires but they didn't...and now "we" have a social security problem
Their great and the sooner you start the more you'll have at retirement
I withdraw 2,000.00 from 401k.Is it true that the cost excise will be 10% for respectively thousand I took out.?
So, this year at tax time I would hold to pay stern $200.00 to the IRS? They told me last year that it would be 10% for respectively thousand that I withdrew.Is this right? I enjoy my 401 with vanguard.Answers: This is from a 401k? Did you cancel it, or did you borrow it? most 401k's will allow you to borrow with no penalty involved. Well, you pay interest, but that interest go into your 401k.
If you actually withdraw the money, the 10% is approximately the penalty. You'll still hold to pay regular taxes higher than that, so, you're actually looking at paying anywhere from 20%-45% on that money - or up to partly goes to paying taxes, depending on your rates bracket.
You incur a 10% penalty for premature deduction plus the withdrawn amount is taxed as routine income. See www.401k.org.