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Originally Posted by GregWeld
You need to find their TRADING SYMBOLS... and then do the exact same research using Google or Yahoo Finance as you would with stocks... look for the best long term track record... or best total return over the long haul.
For diversification -- you can buy Large Cap - Mid Cap (this is the size of the companies they invest in) etc -- or you can also get some "International" exposure in various geographical regions - such as "Asia" etc... and they're also usually "Growth" or "Total return" or "Growth and Income"... The PROBLEM is that just because they have the "Growth and Income" label - doesn't mean they're invested in the right stuff to actually EARN their names!
Did I mention that MUTUAL FUNDS SUCK? They're designed to lull the masses into hibernation while they make massive fees for doing nothing... Don't even get me started...
IF THE FUND GETS DIVIDENDS -- they're reinvested. So yeah -- you get 'em -- and it will be reflected in the total return of the fund.
Did I mention that MUTUAL FUNDS SUCK?
Here's the other problem with mutual funds. You buy their "NAV" -- Net Asset Value" on any given day... but that can go DOWN just because maybe some company lays off half a zillion people - and those people MOVE their IRA's into Rollover IRAs and cash out of the stinkin' mutual fund they were all forced to be in.... so the mutual fund has REDEMPTIONS -- CASH they have to pay out - so they SELL shares of stock to cover the redemptions. They're not in control -- and more important - NEITHER ARE YOU.
But treat them as if they were individual stocks -- research them - look for the best PERFORMANCE over the longest period of time.
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ROTH IRA -- Just pick ANY of the BIG NAME discount brokers.... Schwab - Fidelity - TD Ameritrade etc... I have a Fidelity account -- I don't particularly like them -- or their website - but you can buy/invest in anything there that Schwab has. I prefer Schwabs website. But I actually have accounts about half a dozen DIFFERENT brokerages. One for bonds... Wells Fargo for an IRA (they have a division that if you're a big enough customer they'll hold "private paper" for you - most brokerages won't)... but for just good old fashioned information and ease of use... I like Schwab. It could also be that I've been using them for years... so I'm familiar with their website etc.
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Did I mention you are right... Mutual funds and most 401K plans SUCK..
That is why approx. 10% of my investments are there . I used my old company to match me for the time i was there, and 90% of my Investments are in Schwab, which i control, and the Fees are plain..
Did I mention that i agree that Mutual Funds Suck, and most 401K's are POO...