Saving money within a Mutual Fund?
I am saving money for a down expense for a house. I have $1500 so for. Would it be biddable to put that in a mutual fund, or would it be better contained by a money market portrayal?Also i plan on putting about $500 month surrounded by to that account every month.I know mutual funds can be risky but they tend to hold good return rates.
Answers: There is one point you neglected to mention. When do you preference to buy this house? If in smaller number than 3 years go next to the money market story. 3-5 it might be a toss up. I would split it 50-50. 5+ the mutual fund would be the better alternative. There are tax advantages to investing surrounded by an equity mutual fund. Even more tax advantages to investing surrounded by an index fund. A money market fund offer no tax advantages.
I comend you on good for a house. However, I would be leery of mutual funds at this point in time. ANY fund is going to transport risk and for something like what you are good for, you may want to be a little more on the conservative side. I would indeed recommend a money market as in attendance are still good one out at hand earning over 4%. That's not desperate considering most equities are losing money right now. To step into anything with risk, would probably be a fruitless idea.
Good luck next to this adventure.
Well Josh, it depends on your risk tolerance. Are you competent to take the risk of the helpfulness of your money going down when the market is fruitless? If so then the money marketplace is a safer bet for you. Your mutual fund agent or advisor should be in a position to support accordingly the risks involved as per the fund. The choice is yours and you cannot put the blame on the advisor when the marketplace is bad because it's beyond anybody's control.
Also depends on the time frame of your investment...some funds own given good returns.Ensure that your advisor is a certified financial planner from a reputable Mutual fund company.
Mutual Funds can selection from anything from Government Securities to Blue Chip Stocks, to aggressive stocks. so you can be as aggressive as you would like--
--- but do not forget you are taking on some element of souk risk. (which hopefully you will get rewarded for)
what you do, really depends on when exactly you need the money (6mos, 1 year, 3 years, etc)
But if it be me I would try to do some sort of balanced fund, or conservative stocks, especially since the souk sold off a bunch this year. (you are giving yourself a fortune to make it grow- BUT only just remember you have a opening to lose as well, by the time you necessitate the money.)
Good luck!
I would suggest putting it into a money market sketch, as it would be a waste if you lost adjectives of the money you have save so far, and will be saving. At most minuscule for the time being, as the souk is very thinned right now and here will be few mutual funds that will come out on top. It could be a different story in nine months to a year, but for presently, play it safe and move about with the money bazaar account. If you do bounce into a mutual fund at some point, which I would not recommend, given your intent, I would suggest playing it conservative, as you are investing for a shorter time-frame, and thus have smaller amount time to make up any losses you could potentially incur. I hope this help!
Best of luck in getting your house!
Brendan Prewitt
President, New York Capital Investment Group LLC
Mutual funds are not typically for Short occupancy. Ask about CD's.
ALSO - if you are a first time home buyer:
There are oodles federal and state government programs that may provide assistance and money for closing costs. Start calling your state housing authority to see what is available to you contained by your area.
Below are links to HUD and a couple pf state admit.loan programs. I did not know your state, so I just picked a couple.
It would be financialy irresponsible to put money near a short term obligation in a stock mutual fund.
If you have put money in January 2, 2008 into;
S&P 500 fund, you would own lost 6.28% of your principle.
NASDAQ fund, you would have lost 11% of your principle.
These funds can be unbelievably volitile. A 5 year time horizon (minimum) would be "OK" for a stock Mutual Fund.
Read a couple of books on Mutual Fund Investing (first one could be from the "dummy" series).
If you don't fully understand what you're within, if you don't have a angelic "asset allocation". you'll make the "wrong move" and most plausible lose significant money.
How about a large yield nest egg account? You can acquire about 5% APY, beside some accounts only requiring a minimum of $1 to depart. This would keep your $$ juice. Also, the savings justification would be FDIC insured. (check fine print to be sure).
http://www.getrichslowly.org/blog/2007/0...
I use Wamu at 4.75 APY:
http://www.wamu.com/personal/default.asp
With the stock souk the instrument it have been(going down) should i do something else beside my money?
or ride out the storm?Answers: you never actually lose money on a stock unless you vend it for less than what you remunerated for it. right?
unless you need the money for a vehicle or house down payment.
give notice it where it is.
unless you own tons of money to throw around the stock market should other be looked at as a long term investment.
but you should enjoy your savings divided equally near other
investments not just the stock marketplace.
If you don't have an IRA picture open one right away.
It really depends on what we are discussion about.
See my prev posts
http://answers.yahoo.com/question/index?...
http://answers.yahoo.com/my/profile;_ylt...
Not a angelic idea to rely on a Yahoo board for not easy advice.
It depends. If you're youthful enough and properly invested, the open market is a good place for the long occupancy. You just own to be patient. Market timing simply doesn't work - although there may e times it's correct to take money rotten the board.
If you're older, you should be properly floating so that you probably won't lose much if any money because gains surrounded by your non-stock investments will offset the losses near -- and you don't have to disinvest.
dollar cost average support in.
Are we contained by a secular take on bazaar that started within 2001?
Do I need to describe secular? Here's what I think it vehicle in this context.secular bull - a long upward trend surrounded by stocks lasting 20 years or more. We have one that started around 1950 and lasted to the impulsive 70's. Another one started in the impulsive 80s and arguably ended within 2001.
secular bear - different of secular bull. Long period of on its last legs or sideways movement in stocks.
Some would speak we are finishing a cyclical bull period in a minute.
The bull market that started contained by 2003 or whenever it was is CYCLICAL not SECULAR.
The S&P 500 is something like at the level it be at in the Spring of 2000.
What do you regard? Secular bear or not?
Answers: The U.S. flea market is in a Bear marketplace. This began contained by March of 2000 I believe without looking. It have experienced several mini bull runs as the market rally. This market is Overvalued, Overbought and Overextended.
As the U.S. dollar decline more investors are moving some of their funds to Gold and other sectors that are and own been rising other since 2000.
The last several years have been a bumpy ride for Precious mineral and Gold funds. Invest for the long residence and diversify within a few sector that are expected to do nicely.
We are currently within a danger zone decline. After this bottoms out we should see moral buys in several market that should pose good returns surrounded by 2008. The 8th year in almost adjectives decades has be a good year for returns surrounded by the Mutual Funds after the decline.
Hope this helps you. Everyone have their opinion and this is mine.
No. The Nasdaq is the index you're probably referring to, and it's be too short a period. We are surrounded by a long term bull souk.