A lot of people just look at how the fund did last year and the Morningstar stars, but that's just the tip of the iceberg. |
Brand recognition is nice, but a fund company that has a lot of good performers may be an indication of strong research. But not all funds will do well. |
Don't look at the past six months. Look at the past five, 10 or 20 years of returns. |
Doubling the student loan payment will reduce the time it takes to pay the loan, but the total savings in interest will be marginal. |
Even though he is not eligible for the 401K, he can allocate this money into his non-qualified investments and then stop those savings when he starts his 401K. |
For people who are looking to get into this market, they probably should not have more than 20 percent in tech. |
For small investors, they probably aren't the place to be. |
I have a feeling this market is going to stay very volatile. But it's day-to-day volatility. It scares you. but it shouldn't change your investment strategies. |
I know people think three days is long term in the market these days. But if you're a long-term investor, 2, 3, 4 percent swings, which are big moves in a day, are meaningless when you look back. |
If he saves $2,500 between his 401(k) and outside savings, which he plans to do, this will grow to $526,450 at 8 percent over the next 11 years. The IRA rollover would add an additional $385,000 by age 57, bringing his investments, not including real estate, to over $900,000. |
If it's a straight increase without other hooks in there, it's a great thing. |
If you're not willing to invest more in it, maybe you should sell and invest somewhere else. |
In sector plays, you should buy after a down period, when the numbers look terrible. But when you look at a fund, if similar funds have done well and one fund has done poorly, you don't use that logic. |
In the last several years there hasn't been much of a downside. There hasn't been much of a downside, so people have been spoiled. They don't have a clue as to how it really works. |
Investors have been buying a lot of securities in the last year that haven't made a lot of sense to buy. They bought stocks without knowing why, and so now they're selling stocks without knowing why. |