Mutual Fund Investments 101: Exceptional Performances
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As a Baby Boomer, Generation Jones, Generation X'er, or Millennial, it is imperative to plan and take action today for your future retirement! This is best achieved by establishing a goal. How large of a nest egg do I need? Will the investments be aggressive, conservative, or moderate? Should the risk be low, average or high? How much money will be saved and invested for retirement? Will the investments be weekly, bi-weekly, or monthly? The most difficult challenge faced will be perseverance. At times, saving money will be difficult due to health, vacation plans, college, weddings, etc. All of these questions, and much more, must be considered in your retirement planning. As always, the success or failure of your retirement portfolio should be in your hands.
IRA & Mutual Fund Investments
Mutual Interest Data Service, Ltd. has analyzed thousands of mutual funds over 18 years to find outstanding mutual funds. In accomplishing this feat, every year a database of 300 successful mutual funds are analyzed on performance and income distribution. This year, there are 33 outstanding mutual funds identified as the best 23 Equity/Stock mutual funds and 10 Bond funds among the database. Twenty one of these funds were ranked in the top 10% of their respective investment category for 5-year average return. The 2017 year-to-date returns, 5-year returns and income distribution are posted on the performance page. The only cost to get the names and a comprehensive report of these mutual funds? Purchase the paperback, Mutual Fund Investments 101: Exceptional Performances.
One of the best and most successful retirement planning methods available is placing assets in traditional Individual Retirement Accounts (IRA) and diversified mutual funds. The author has used this method for over 30 years and, as a retiree, can attest to its success. The shareholder can directly contact the investment company. The benefit is making investments without incurring a broker or dealer fees, there is no account churning.
There are two kinds of IRA accounts, Traditional IRA and Roth IRA. The traditional IRA portfolio is designed to save for retirement that provides tax advantages. Tax is deferred until reaching the age of 70½. Investment distribution of income and capital gains “reinvested” will not be taxed. However, withdrawal of any distribution prior to the age of 70½, will be taxed. The Roth IRA portfolio is similar to the traditional IRA except that the money invested is tax-free. Other unique features allow contributions to be continued past the age of 70½, while the investor has earned income. The taxpayer can maintain the Roth IRA indefinitely and there is no required minimum distribution (RMD). The best course of action is always to consult with your accountant to determine which IRA is most beneficial.
Mutual funds that have successful long–term returns are excellent investments to build assets in Individual Retirement Accounts. A mutual fund is an asset comprised of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, etc. A mutual fund's portfolio is structured and maintained to achieve the investment objective listed in its prospectus. The specific objective, as examples, could be Equity Income, International, Small-Cap, Large-Cap, Health/Bio Technology, Corporate Debt, High-Yield Munis, etc. Every mutual fund has professional managers controlling, directing, and managing the individual stocks or bonds to buy and sell. There are 4 major factors that investors should always consider when investing in mutual funds.
1) Net Asset Value - the current market price of the mutual fund assets per share.
2) Performance – comparing the opening share price vs. the closing share price percentage of gain or loss.
3) Distribution - income and/or capital gains that mutual fund shareholders receive from the investment.
4) Risk – investment losses. The types are below average, average, above-average, or high.
The bottom line of achieving a successful and prosperous retirement program depends on how soon you begin your retirement savings and how committed you are to achieving your retirement plans.
Mutual Interest Data Service, Ltd
Hamilton. New Jersey 08619