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wegotdatwood 
Arkansas Fan
Member since Aug 2009
14166 posts
| Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 12:13 pm)
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.
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 12:16 pm to wegotdatwood)
Or with this small amount should I just put it in a blue chip stock that has a divi? Ex. XOM or KO
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tokenBoiler 
Purdue Fan
Lafayette, Indiana
Member since Aug 2012
177 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 12:26 pm to wegotdatwood)
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%)
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Broke 
LSU Fan
AKA Buttercup
Member since Sep 2006
49999 posts
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| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 2:52 pm to tokenBoiler)
quote:
but I ain't no financial big-brane.
No shit?
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gatorsimz 
Florida Fan
cafe risque
Member since Feb 2009
5261 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 5:14 pm to wegotdatwood)
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?
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 5:21 pm to gatorsimz)
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?
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Janky
LSU Fan
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Member since Jun 2011
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| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:01 pm to wegotdatwood)
Sorry.
This post was edited on 12/12 at 6:02 pm
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Janky
LSU Fan
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Member since Jun 2011
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| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:01 pm to wegotdatwood)
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.
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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5261 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:14 pm to Janky)
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
1959 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:19 pm to wegotdatwood)
look into total market etfs
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:24 pm to Hand)
Any specific ones you have in mind?
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Hand
Army Fan
far side of the moon
Member since Dec 2007
1959 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 6:50 pm to wegotdatwood)
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
32181 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 7:16 pm to tokenBoiler)
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.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2649 posts
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| re: Anyone like to help me out with a mutual fund? (Posted on 12/12/12 at 7:23 pm to BamaScoop)
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
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matthew25 
Ole Miss Fan
Member since Jun 2012
1677 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 1:01 am to Janky)
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.
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 1:21 am to matthew25)
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
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 1:26 am to matthew25)
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
2649 posts
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| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 9:24 am to matthew25)
This post was edited on 12/13 at 9:31 am
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matthew25
Ole Miss Fan
Member since Jun 2012
1677 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 10:34 am to Janky)
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.
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wegotdatwood
Arkansas Fan
Member since Aug 2009
14166 posts
| re: Anyone like to help me out with a mutual fund? (Posted on 12/13/12 at 10:37 am to matthew25)
So are you required to pump more money in each fund each month?
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