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Mutual Fund Terms

When investing in mutual funds, there are many terms to know and understand. However, they are not always common knowledge. To better help you evaluate your investments and understand what your financial planner is telling you, let us discuss some common terms. 1. Equity Funds – These funds invest only in stocks. 2. Fixed Income Funds – These funds invest only in bonds. 3. Growth Funds – These specialize in companies expected to grow quickly, particularly when compared to similar companies in the same industry. 4. Index Funds – The fund managers of these funds try to match the stock … Continue reading →

Selecting a Mutual Fund

The key to investing is to diversify. The best-diversified investment is a mutual fund. The way a mutual fund works is the fund manager selects a huge assortment of stocks to make up the fund. Therefore, it is an easy way to invest money in a variety of individual companies. In general, different mutual funds perform differently based on the market sector they are a part of and the “luck” or talent of the fund manager. Given this, how do you select a mutual fund for you? Whether it is for your children’s college education, retirement or even shorter-term investment … Continue reading →

We’re Broke! Why Do We Need a Financial Planner?! Part 1

After my divorce, the financial planner who had worked with my former husband and I continued to call me every six months or so, wondering if I was ready to put a new financial plan into place. I was flattered, if a little confused, about why he was bothering with me. I had primary physical custody of our infant daughter, I was receiving no financial support from her dad, and I was working for a notoriously underpaying local non-profit. Let’s face it, I was broke. The answer to the question, of course, is that it is an undisputed fact that … Continue reading →

Investment Risks

My husband and I had a recent conversation the other day about investments I thought would be interesting to share. We discussed that there are two kinds of risks with investing. Most people think there is only one kind of risk… The first risk is the obvious one, market volatility. When newbie investors launch into the stock market this is the risk that scares them. Will the value of my portfolio go down? Can I lose money? With any stock investment strategy, there is the potential to lose money, yes. Nevertheless, playing it safe is also a risk. The second … Continue reading →

Asset Allocation Chart

I received the coolest chart in the mail today from T. Rowe Price, so I had to share. They call it their Asset Allocation Chart; it is a quick tool to help you decide how to manage an investment portfolio depending on the timeframe you will need the money. What I liked in particular about this simple chart, was it went beyond the basic retirement portfolio and offered some advice on shorter-term investments as well. If you are not already an account holder at T. Rowe Price, I am sure you could call them to have one sent to you. … Continue reading →

How to Choose a Good Bank

Your money is a treasure. Deciding where to keep it can be a tough decision. These days there are a wide range of options – all better than keeping your money stashed under your mattress! Usually a larger well-known bank is the safest choice; although they are also less likely to offer you quality customer service. Many recommend instead choosing a smaller local bank with a high rating to get the best of both worlds. How to determine a highly rated bank? First ensure they are part of the FDIC, also known as the Federal Deposit Insurance Corporation. This institution … Continue reading →