Anyone like to help me out with a mutual fund? | TigerDroppings.com
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wegotdatwood
Member since Aug 2009
17094 posts

Anyone like to help me out with a mutual fund?

I have a small roth ira built with $6,100. Any recs on a good mutual fund? I'm not too smart with the market and some options here.

I don't want to money just sitting in my account like it currently is.




wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
Or with this small amount should I just put it in a blue chip stock that has a divi? Ex. XOM or KO


tokenBoiler
Purdue Fan
Lafayette, Indiana
Member since Aug 2012
654 posts
Online

re: Anyone like to help me out with a mutual fund?
Mutual fund is a good idea, in my opinion. Any of the big name companies will have lots of funds for you to choose from - Vanguard, Fidelity, etc. I've got money in American Century funds, for what it's worth but I ain't no financial big-brane.

If you do go with a mutual fund for retirement money -- DON'T PAY BIG EXPENSES!!! The expenses charged may be more important than any historical returns they show. Compare the fees very closely. You shouldn't have to pay to put money in, pay to take money out (kinda irrelevant for a Roth just starting, but watch out for it), or pay more than a fraction of 1% in total expenses. (Bond funds and index funds should be very low %; actively managed equities funds might be up around 1%)


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58950 posts

re: Anyone like to help me out with a mutual fund?
quote:

but I ain't no financial big-brane.


No shit?


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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5522 posts

re: Anyone like to help me out with a mutual fund?
A lot of people like Vanguard because of their low fees. Besides them, I like American Funds. They have lower than average fees and have proven funds.

What's your timeline for investing? Less than 5 years? 5-10? 10+?
Are you willing to take on more risk for a potentially higher return?
What's your reason for investing in mutual funds?


wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
quote:

What's your timeline for investing? Less than 5 years? 5-10? 10+?


Long term, so 10 plus. I'm just 24

quote:

Are you willing to take on more risk for a potentially higher return?


Sine I'm young, yes.

quote:

What's your reason for investing in mutual funds?



I straight don't know what to do with my small amount in the roth I've set up. Do they act just like stocks in that you buy and sell them?


Janky
LSU Fan
Team Primo
Member since Jun 2011
10941 posts

re: Anyone like to help me out with a mutual fund?
Sorry.
This post was edited on 12/12 at 6:02 pm


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Janky
LSU Fan
Team Primo
Member since Jun 2011
10941 posts

re: Anyone like to help me out with a mutual fund?
Alger spectra fund is good over the long term. I don't like the volatility, but if you forget about it then it has done well. Also, PRPFX is always a good bet.


gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5522 posts

re: Anyone like to help me out with a mutual fund?
quote:

PRPFX


Nice choice. No front end load and low fees. It's conservative but that's a good way to be for the next few years.


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Hand
Army Fan
far side of the moon
Member since Dec 2007
2009 posts

re: Anyone like to help me out with a mutual fund?
look into total market etfs


wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
Any specific ones you have in mind?


Hand
Army Fan
far side of the moon
Member since Dec 2007
2009 posts

re: Anyone like to help me out with a mutual fund?
My normal disclaimer is that for specifics, you should evaluate your own risk appetite, perform your own due diligence, and consult a licensed professional.

That said, VTI is the largest, broadest, most liquid, and has one of the lowest expense ratios.


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BamaScoop
Alabama Fan
Panama City, Florida
Member since May 2007
34038 posts

re: Anyone like to help me out with a mutual fund?
With respect to expesnes it seems that the vanguard funds have very low expenses compared to a lot of others.

Im trying to research this same subject. Im looking at a vanguard total stock market fund.

Im currently looking at VTSMX. It has a relativly high risk and it is trading at about $35.81. I may put a few thousand dollars in this just to see what it will do but I am going to wait until after the first of the year.



Janky
LSU Fan
Team Primo
Member since Jun 2011
10941 posts

re: Anyone like to help me out with a mutual fund?
Expenses are not the end all be all. If a certain fund is 1% more in expenses but outperforms by 3%, I would say that is a pretty trade off. Take VTI for example, compare it to YACKX, PRPFX, SPECX and the S&P 500. Compare it over the last 5 years and lifetime. I would have gladly paid extra for those returns.

ETA: I also own some vanguard funds, so I am not totally against those.
This post was edited on 12/12 at 7:25 pm


matthew25
Ole Miss Fan
Member since Jun 2012
3977 posts

re: Anyone like to help me out with a mutual fund?
PRPFX has too much gold and silver for my taste. Bad sign. 5-Star rating, with "high" return. Both are good signs. Above average risk. Bad sign. 4 year returns are 19, 19, 2, 7. Can do better.

My best mutual fund right now is VWELX. Could be VDIGX or VDAIX if the dirty deal is done in DC.


wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
quote:

Could be VDIGX or VDAIX if the dirty deal is done in DC.



Why is that?

What if it isn't done?


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wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
Anyone think REIT's would be good? Housing is doing quite a bit better.


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Janky
LSU Fan
Team Primo
Member since Jun 2011
10941 posts

re: Anyone like to help me out with a mutual fund?
This post was edited on 12/13 at 9:31 am


matthew25
Ole Miss Fan
Member since Jun 2012
3977 posts

re: Anyone like to help me out with a mutual fund?
Wood - the VWELX (Wellington) is a balanced fund, meaning it has 65% stock and 35% fixed income. (Fidelity also has a good balanced fund, and Vanguard Star is another).

The other 2 I mentioned are 100% stock funds. The talking heads on Fox Business are saying that when the FC is resolved, look for as much as a 5-10% pop in the Dow/S&P over a 60 day period. They also say the monied foreign investors are intrigued with the FC and are watching this soap opera play out.

Thus the 100% stock funds should go up more than the balanced fund.

I hope.


wegotdatwood
Member since Aug 2009
17094 posts

re: Anyone like to help me out with a mutual fund?
So are you required to pump more money in each fund each month?


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