Mutual Funds: These offer stock market access to the small investor with investment diversification and professional management.

WHAT ARE MUTUAL FUNDS?

Mutual funds combine the money of many investors to buy many kinds of investments, like bonds, stocks, real estate, and so on. Mutual funds offer stock market access to the small investor with investment diversification and professional management with a relatively small investment. With a mutual fund you’re dividing up your money among many different investments (diversification) to reduce risk. With your funds divided, if one investment drops in value, in theory the other investment(s) are going up in value. So in the long term your investment growth is steady and safer. There is still risk however, if you choose two investments and they both drop in value, and then you loose money. So manage your mutual funds wisely and be aware of the all risks before you decide to invest.

WITHDRAWL FUNDS

With mutual funds you have the right to deposit or withdraw your money out at any time. Just be aware that the selling rate for your funds may be higher or LOWER then what you purchased them for. And when you sell your funds they will be sold at that days value. NOTE: When you withdraw money from a mutual fund, it’s considered”selling” your mutual fund stock.

INVESTMENT MANAGER

Financial planner have years of experience with mutual funds and investing. They know more about diversification and risks than anyone else. Be sure to have the right management to buy and sell funds within your mutual fund.

FEES
Fund Managers are paid by you the investor. It’s like paying a fee-for-service, the fees are charged to anyone who invests into the fund.

MUTUAL FUNDS & RETIREMENT
Your retirement accounts can be set up to be mutual fund invested. Your 401(K), IRAs, and other retirement accounts can fund mutual funds. Investments through a retirement plan are treated the same.

Income into a plan – No tax taken or penalties when it receives earnings.

Income comes out – income out must follow retirement plan rules and tax fees or penalties.

A financial planner should be able to help you decide if a mutual fund is right for you and your retirement goals. They would also be able to help explain some of the benefits and pitfalls this may have for you, your plans, and your tax restrictions. \

MUTUAL FUND TYPES

Here are the most common Mutual Fund types:
Value Funds – Usually low price and low earnings.
Growth Funds – Funds range from above average returns to an extreme amount of returns in the shortest amount of time.
Equity Funds – provides steady long-term growth and income.
Specialty Funds – Not diversified, all funds in one investment arena, example: technology.

FINDING A FINANCIAL ADVISOR
A financial advisor can ensure you’re saving enough to meet all your immediate and retirement needs. Find out what’s best for you and your retirement goals! Learn more about the different asset allocation types, explore the areas above and fill out our online form to find a certified financial advisor in your area.