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how to invest 50K in Mutual Fund?

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Money Talk > Investing, Stocks and Bonds

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dummies05
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how to invest 50K in Mutual Fund?  Reply with quote  

Hi Everyone,

I am 37, don't have any 401K or IRA and never own any stocks or mutual Fund. I would like to open ROTH IRA account for my wife and I, each of us can contribute a total of $7,000 for maximum 2004 ($3,000) and 2005 ($4,000) contributions. (Which total of $14,000)

Also I want to invest about $36,000 in Mutual fund and Bond,we don't need to use the money for the next 5 to 10 years.Due to my lack of knowledge on the investment,I have no experience buying stock or Mutual Fund.I have few following questions:

1. Should I use my local bank (Bank of American) or should I use brokerage account or an account with a mutual fund firm?

2. So many companies such as, TD waterhouse, Fidelity, T.Rowe,Vanguard, Charles Schwab,Scottarde..etc.I can't decide which one should I use?

3.Should I split my money in few difference providers? I like TD waterhouse, Charles Schwab and Vanguard.

4. For the Bond part, should I get I-Bond directly from Treasury Direct web site http://www.savingsbonds.gov? Or should I stay with the regular Bond form companies like TD waterhouse?

I have clueless in terms of how to shop for Mutual Fund, I know S&P 500 Mutual Fund and Bond should be more save to invest. I am still in the process of learning how to shop for Mutual Fund.

I would like to hear some suggestions on what to do with $50,000 in the following scenario...
Should we diversify my investment in.
35 % S&P 500 (don't know which one to buy)
10 % Small or mid cap (don't know which one to buy)
35 % Bond (5 years)
20 % International Mutual Fund (don't know which one to buy)


Thanks for your input.
Post Fri Jan 28, 2005 5:28 pm
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RetirementPlanner
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Still there??  Reply with quote  

First thing, it sounds like you are doing some homework. That is good.

However, I know you are still young....but WHY would you want to gamble with your PRINCIPAL?? Most advisors don't want clients to know there are options out there for your retirement plans that offer the UPSIDE POTENTIAL OF MARKET LINKED returns without the downside of market down turn. These plan offer double digit potential...are guaranteed...and can be used for ROTH or TRADITIONAL IRAs.

Know the other great thing about them....NO FEES EVER !!! (I know all the mutual fund people out there will go nuts for me telling you the truth there!!)

By the way....where are you located??

My email is Lfeagent1@aol.com

Thanks... Richard
Post Fri Jan 28, 2005 5:56 pm
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dummies05
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Re: Still there??  Reply with quote  

Richard,

I am in CA. Thanks for your reply. I am completely new to investing and want to learn how more. During the pass week I was reading web page articles, finance books, and magazines, I had learn a bit and has given give me a lot of investment ideas, but also very confusing with a wide range of options in the market such as: Mutual Funds, Stocks, Bonds, Annuities, retirement accounts and or others…

I don't want to gamble my principal, I hope my money can put into the right direction. I definately will watch out for the Broker advisor, they are most likely selling commission based products and does not care about downside risk or knowing when to sell. I like to avoid being mislead into investing my money in all the wrong places. I still in the process of learning how to investment, any suggestion would be great!

Thanks again.

quote:
Originally posted by RetirementPlanner
First thing, it sounds like you are doing some homework. That is good.

However, I know you are still young....but WHY would you want to gamble with your PRINCIPAL?? Most advisors don't want clients to know there are options out there for your retirement plans that offer the UPSIDE POTENTIAL OF MARKET LINKED returns without the downside of market down turn. These plan offer double digit potential...are guaranteed...and can be used for ROTH or TRADITIONAL IRAs.

Know the other great thing about them....NO FEES EVER !!! (I know all the mutual fund people out there will go nuts for me telling you the truth there!!)

By the way....where are you located??

My email is Lfeagent1@aol.com

Thanks... Richard
Post Fri Jan 28, 2005 6:58 pm
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RetirementPlanner
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INVESTMENT HELP  Reply with quote  

Hello again,

I was out on an appointment. I am an Estate & Financial Planner in 6 states. I can give you some insight into what I was speaking about before...just email me with some of your situation and questions.

If it something that interests you...I can find you a local representative with my firm. We operates throughout the US.

My email is Lfeagent1@aol.com. If you want to chat....leave me your contact information.

Thanks

Richard
Post Fri Jan 28, 2005 10:25 pm
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BlankenshipFP
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 Reply with quote  

RP -

Please don't use this board for prospecting.

Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
Post Fri Jan 28, 2005 10:34 pm
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dummies05
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Re: INVESTMENT HELP  Reply with quote  

Hi Richard.

I only have 4 questions:

1. Should I use my local bank (Bank of American) or should I use brokerage account or an account with a mutual fund firm?

2. So many companies such as, TD waterhouse, Fidelity, T.Rowe, Vanguard, Charles Schwab, Scottarde. etc. I can’t decide which one should I use?

3. Should I split my money in few difference providers? I like TD waterhouse, Charles Schwab and Vanguard.

4. For the Bond part, should I get I-Bond directly from Treasury Direct web site http://www.savingsbonds.gov ? Or should I stay with the regular Bond form companies like TD waterhouse?

Thanks!


quote:
Originally posted by RetirementPlanner
Hello again,

I was out on an appointment. I am an Estate & Financial Planner in 6 states. I can give you some insight into what I was speaking about before...just email me with some of your situation and questions.

If it something that interests you...I can find you a local representative with my firm. We operates throughout the US.

My email is Lfeagent1@aol.com. If you want to chat....leave me your contact information.

Thanks

Richard
Post Sat Jan 29, 2005 12:48 am
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freddmf
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Re: INVESTMENT HELP  Reply with quote  

quote:
Originally posted by dummies05
1. Should I use my local bank (Bank of American) or should I use brokerage account or an account with a mutual fund firm?


That's up to you. If you are clueless, maybe you need a full service broker? But they are VERY expensive.

quote:
Originally posted by dummies05
2. So many companies such as, TD waterhouse, Fidelity, T.Rowe, Vanguard, Charles Schwab, Scottarde. etc. I can’t decide which one should I use?


I have my account at eTrade. But, any broker online will do if you know what you are doing.

Have you looked into Index funds?

If you open an online account with at least $5000 you can buy and HOLD any one of many Index funds for very little money.

Index funds are very low overhead funds that track the broader market averages which if you look at 1000 mutual funds, more than half won't beat an index fund over 10-15 years.

quote:
Originally posted by dummies05
3. Should I split my money in few difference providers? I like TD waterhouse, Charles Schwab and Vanguard.


If you are asking if you should split your money between different mutual funds, the answer is yes. If you are asking if you need multiiple brokerage accounts, that's not necessary. You can have a brokerage account, and an IRA or Roth IRA with most brokers (I have a cash based investment account, and a Roth IRA account with eTrade).

quote:
Originally posted by dummies05
4. For the Bond part, should I get I-Bond directly from Treasury Direct web site http://www.savingsbonds.gov ? Or should I stay with the regular Bond form companies like TD waterhouse?


Is there a reason, at your age, you are considering bonds?

Be careful of brokers, financial planners, and paid for advice, your best advice is not from me, or them -- it's getting to know people personally that you can trust.

Does anyone in your family know someone that has any money?

Bottom line: Start reading and learning how to invest. If I were just getting started today I would go with an online broker with no fees, and invest in index funds (there are many that track everything from the S&P to the Dow Dividend to the companies that derive income from investing in China). I have money in all three of these type of index funds (about 25%). The rest I invest directly in stocks.

I'm not a broker. I'm not willing to give stock recommendations. I'm not a financial planner (that title kills me -- if you are GOOD at being a financial planner why do you have a job??? lol). Anyway, just a guy that figured out enough to build wealth to not need a job.

Take care,
Fred
Post Sat Jan 29, 2005 3:01 am
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freddmf
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Re: how to invest 50K in Mutual Fund?  Reply with quote  

quote:
Originally posted by dummies05
Should we diversify my investment in.
35 % S&P 500 (don't know which one to buy)
10 % Small or mid cap (don't know which one to buy)
35 % Bond (5 years)
20 % International Mutual Fund (don't know which one to buy)


It depends on your time frame, and willingness to do your homework. I have always hated breakdowns like this. How about timing? What if the dollar crashes?

Of course the conservative investor says that's why you diversify like this. But, if you diversity to much you end up with no returns (trying to be everywhere all the time).

I have never bought bonds, but I'm 41. I see no reason. Maybe if I had $10 million and wanted to live off a few hundred grand it would be fine. I don't know.

But, if you are an amateur investor, just do your homework on index funds. If you want to have diversity, you can invest in a S&P index fund (I hold SPY) and you can find international index funds as well.

Spend 3-5 years learning how to invest, if you are inclined to do so, and then start investing in individual stocks. You will have FAR more volatility with investing in stocks and the 'average' investor ends up selling low and buying high (even though the average investor will tell you they would never do that). The emotions get the best of ya. If you track a mock portfolio for 3-5 years, you will know if you are on track to do the right things with real money.

Until then, just hit the index funds with a no fee broker (just a $10-$20 trade fee) and you will probably do fine over the LONG run. Remember, investing is risky -- the higher the risk, the more potential return. The lower the risk, the less potential return.

Take care,
Fred
Post Sat Jan 29, 2005 3:14 am
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dummies05
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Re: how to invest 50K in Mutual Fund?  Reply with quote  

So glad to find this forum, I learned a lot from you guys here. Thanks for all your input.
I love to hear advice and theory and hope all of you can continue educate me more skills in how to manage money.

I hope that I going into the right direction on building a Nest egg, I learned that the easiest thing to do is to loss money. I know more about individual stocks than Mutual fund, I had made some money from individual stocks before. Regarding of Mutual Fund, I still have countless questions in my mind since this is all new for me.

I need to study more in order to understand what is all those Mutual Funds are? And what kind of Categories they are belonging to? Such as:

No load fund?
Low Cost Fund Family?
Index Fund from the fund families?
Balance Mutual Fund ?
Exchange traded fund?
SP 500 SPY?
Total Stock Market Fund?
Target Fund?
Midcap index fund?
Small Cap index fund?
QQQQ?
Inflation Index Savings Bonds?
Mortgage-backed bonds?
More……………….

I just bought a book today “ Mutual Funds for Dummies" by Eric Tyson, need to go do some reading now. Thanks again for your input.

My e-mail
lowpricebuilder@yahoo.com
Post Sat Jan 29, 2005 5:22 am
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RetirementPlanner
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dummies05 and "Fred"  Reply with quote  

Hey guys!!

You are still looking at the hard way of investing....MICROMANAGING !!

I know you didn't get that $50k by being a MICROMANAGER !!!

YOU'RE PRETTY DARN SUCCESSFUL AT SOMETHING !!!

SO....WHY MICROMANAGE YOUR LONG TERM MONEY & RETIREMENT PLAN??

BECAUSE IF YOU DO....THAT IS WHAT YOU WILL SPEND YOUR TIME ON...THAT $50K AND NOT MAKING THE NEXT $50K OR $100K !!!

TOO MANY INVESTORS HAVE BEEN "POISONED" INTO THIS MENTALITY THAT PROFESSIONAL MANAGEMENT IS A BAD THING!!

MORE IMPORTANTLY....YOU ARE NOT LOOKING FOR TRULY THE BEST INVESTMENT VEHICLE FOR YOUR GOAL!!

Try this....picture your goal.....A LOT OF $$$$$$$$$$$ DOWN THE ROAD....RIGHT??

NOW WORK BACKWARDS!! THERE IS A REASON THE TORTOISE (SP?) WON THE RACE AND NOT THE HARE!!



FOR THE RECORD.....FRED......I AM A FINANCIAL PLANNER AND ITS NOT A LAUGHING MATTER!! I ENJOY MY WORK TREMENDOUSLY AND I AM DAMN GOOD AT IT TOO!! I MAKE A VERY COMFORTABLE LIVING, WORK WHEN I WANT TO WORK...NOT WHEN I AM TOLD....AND I AM IN MY 6TH SEASON OF COACHING MY SON'S BASKETBALL TEAM (3-0......outscored our opponents 124-52 so far!!) IN 6 YEARS OF BASKETBALL, SOCCER, BASEBALL, ETC....I HAVE MISSED (1) ONE GAME.......

NOT MANY "JOBS" OR "CAREERS" THAT CAN DO THAT...ARE THERE?????


d05....i got your email addy....I will email you and explain more....UNFORTUNATELY...I can't save all investors....BUT I WOULD CONSIDER IT AN HONOR TO HELP SAVE SOME $$ FOR YOU!!


Richard
Post Sat Jan 29, 2005 6:59 am
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retired015
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I think you should look into alternatives to investing those types of funds their are many investments available that offer much safer investment than mutual funds and can offer a higher return than a bank. Check out www.artstarmanagement.com for example they have a mortgage program that to me seems pretty strong
Post Sat Jan 29, 2005 9:14 am
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David Briggs
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ArtStar Management = Arthur Veal  Reply with quote  

Arthur Veal may be trying to go straight, but all relevant and material information regarding his personal history should be fully disclosed.

http://www.jessejacksonjr.org/query/creadpr.cgi?id=%22005331%22

~~David
Post Sat Jan 29, 2005 4:52 pm
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wafewe
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Here some money talk is on the given page and here a method is given that how may you invest your money and make it profitable. By the help of some bestessays review you may know about the given topic and about other methods of making money.
Post Wed May 23, 2018 9:30 am
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soumailaadamou
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here's some idea to invest on I had that money:
the stock market
Real Estate
Post Sun Jul 08, 2018 10:23 am
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