Buying mutual funds..need help | TigerDroppings.com

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SDTiger15
LSU Fan
Tepid pool of my own filth
Member since Jan 2005
9154 posts

Buying mutual funds..need help


I want to begin purchasing mutual funds through my online brokerage account.

The problem is I have no idea where to start or what to buy.

This is going to be retirement money so I plan on keeping it in for over 10 yrs.

Anybody want to educate me?







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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Buying mutual funds..need help


I bought my first one in December. VDAIX. I'm not expert though.





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14085 posts

re: Buying mutual funds..need help


quote:

Anybody want to educate me?



I will, but you gotta pay me first

Kidding. If I'm gonna buy a Mutual Fund, I look for 4 things, specifically, before buying.

1.) Type of Fund. Because I'm relatively young, 29, and have a minimum of 30 years to stay invested, I only buy 5 types of funds. Growth, Growth and Income(or Blue Chip), Small Cap Growth (Or Aggressive), International Growth, and Index Funds (VFINX is probably the best you're gonna find).

2.) Age of Fund I don't buy any funds that haven't been around at least 10 years. Age and experience will overcome youth and vigor.

3.) Performance I look at the fund's performance over the last 5 years, 10 years, and lifetime. The best way to evaluate performance is to compare the returns to the S&P, and other funds in it's category.

4.) Fees and Expenses If you don't want to pay a "Load Fee", find a No Load Fund. I don't mind paying a Load in some cases because the performance more than compensates. You want low expense ratios if you can find them.



One other thing, I don't buy sector specific funds, because the market treats different sectors well/poorly at different times, I want a piece of the ENTIRE MARKET, not just certain parts.


Good luck






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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts

re: Buying mutual funds..need help


(no message)


This post was edited on 3/13 at 4:45 pm


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Solo
LSU Fan
Member since Aug 2008
3676 posts

re: Buying mutual funds..need help


Best LA fund is VILLX.





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agdoctor
LSU Fan
Louisiana
Member since Dec 2004
1766 posts

re: Buying mutual funds..need help


safest thing in my opinion is to put it in a Vanguard Target retirement fund until you can educate yourself about retirement, stocks, bonds, mutual funds, etc. pick the one that matches year of your retirement and Vanguard does the allocation for you.





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slackster
LSU Fan
Houston
Member since Mar 2009
6323 posts

re: Buying mutual funds..need help


quote:

safest thing in my opinion is to put it in a Vanguard Target retirement fund until you can educate yourself about retirement, stocks, bonds, mutual funds, etc. pick the one that matches year of your retirement and Vanguard does the allocation for you.





This. Doesn't have to be Vanguard, but they are the popular family for this board.

Investopedia.com can be your friend for all of this as well.






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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


I have both VDAIX (up 8.69% YTD) and VFINX (up 8.72%). These are "stock" mutual funds. Look at their top 10-20 holdings and see if you agree on upside.

VILLX is a "balanced" fund (has stock and bonds). It is up 3.25% this year, but has very good track record. It is rated high risk by Morningstar, so at my age I am not a player.

I only have 2 sectors covered - health care through T.Rowe and Vanguard, and a consumer staple ETF -- XLP, which means it trades like a stock and has lower fees.






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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


Define "LA" please.





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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


Your "type of fund." Looks like you follow, to some extent, the advice of Brother Dave in Nashville?





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
14085 posts

re: Buying mutual funds..need help


quote:

Your "type of fund." Looks like you follow, to some extent, the advice of Brother Dave in Nashville?



Lol, you picked up on that? Pretty similar to "Brother Dave", but I also buy single stocks, which he considers to be the root of all evil






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Solo
LSU Fan
Member since Aug 2008
3676 posts

re: Buying mutual funds..need help


LA = Louisiana

It's an LSU board so if someone wants to keep their money local this is a great spot.

#1 rated fund in it's class, I believe.






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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


Dave concedes that if you must buy stocks, buy only one stock.

I listen to him for good ideas, and sometimes I agree.






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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


I looked at MSN Money "management" profile on this MF, and it said they were in Wisconsin.

It also had the website, which showed Denis Villere on Poydras.






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Solo
LSU Fan
Member since Aug 2008
3676 posts

re: Buying mutual funds..need help


Yes, it's in NOLA.





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18993 posts
 Online 

re: Buying mutual funds..need help


I just make it easy on myself, but added a little splicing to make it "fun."

VTI - 55%
VEA - 20%
VWO - 10%
VSS - 10%
BND - 5% or less

I don't have many good options that I like in my 401k, so that is all in the Fidelity Target 2055 or whatever.



This post was edited on 3/8 at 11:52 am


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SDTiger15
LSU Fan
Tepid pool of my own filth
Member since Jan 2005
9154 posts

re: Buying mutual funds..need help


Great info guys, thanks





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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


Teddy - You must like foreign stock: VEA, VWO & VSS = 40%





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18993 posts
 Online 

re: Buying mutual funds..need help


Ya, it could be seen to be a bit high but my VTI is probably closer to 60/40 in practice which i dont think is too crazy...i hope.





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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: Buying mutual funds..need help


If you are young, go for it.





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