What do I have to be careful of when buying mutual funds?

[Big Al's Texas BBQ]

I'm a total noob at investing, but I want to be able to retire with some good money saved up. From what I've researched, mutual funds seems to be the best way to build up good money. How risky are mutual funds? What should I be looking for when deciding on what to buy?

 

[therealdope]

Fees.

 

[minute bull]

Make sure you didn't buy mutual buns by accident.

 

[Rygu]

I feel you should search out a different opinion on mutual funds instead of Sherdog.

 

[SMillard]

do some research on the company, find out their fee structure, costs for re-distribution of funds or adjusting your account. Check the background and reviews of your agent see if they are reputable. Also if you find someone that tells you they ALWAYS making steady gains, that's a red flag. That was one of the biggest warning signs people ignored from the Maddolf fiasco.

Also if you work for someone that has a 401K take advantage of that, normally the company you work for will offer a match up to a certain percentage and the contributions are pre-taxed dollars which helps on your year end taxes. Also if you do it after you've established one account consider opening a second (eggs in one basket and all that).

 

[CutStryker]

I'm a total noob at investing, but I want to be able to retire with some good money saved up. From what I've researched, mutual funds seems to be the best way to build up good money. How risky are mutual funds? What should I be looking for when deciding on what to buy?

Call the Dave Ramsey Show

1-888-825-5225. 12pm-3pm PT

Diversify, spread over 4 types. Growth, Growth and income, Aggressive Growth and International.

Ask him questions

 

[Big Al's Texas BBQ]

Call the Dave Ramsey Show

1-888-825-5225. 12pm-3pm PT

Diversify, spread over 4 types. Growth, Growth and income, Aggressive Growth and International.

Ask him questions

I find him good at helping people get out of debt, but find his investing advice a bit dubious.

 

[AznTrojan]

forget mutual funds.. buy ETFs instead..

start with VOO or any other S&P 500 ETF

 

[Goon Dog]

https://www.fundx.com/

I don't work for them or represent them in any way, but I've invested there for over 20 years. Look at the upgrader funds. Be serious. Be vigilant. Do your homework. You'll thank me later.

 

[Pure Peace]

stay with the big name mutual funds and brokerage firms

generally, the fees (usually 4-5% upfront of purchase price) is charged

so you do not want to be constantly trading or selling in and out of mutual funds, like you would with individual stocks.....

 

[GSP_37]

Keeping good records of cost basis including reinvested dividends.

You're not likely to get filthy rich from mutual funds. You can get rich from individual stocks that are NOT hyped up bubble stocks with zero earnings or super high P/E ratios.

 

[Alech33]

Mutual funds are better than not investing at all but generally speaking, you're being taken advantage of. You pay in a good or bad market, essentially ppl are just using your money and giving you back scraps. It's safe but you're not going to get rich that way. If you're really interested in getting a meaningful return, learn about stocks. I started investing 2 years ago. I'm up over 7k. I certainly don't consider myself an expert though, I understand the economy has been good. However I have learned from successes and failures

 

[Big Al's Texas BBQ]

Mutual funds are better than not investing at all but generally speaking, you're being taken advantage of. You pay in a good or bad market, essentially ppl are just using your money and giving you back scraps. It's safe but you're not going to get rich that way. If you're really interested in getting a meaningful return, learn about stocks. I started investing 2 years ago. I'm up over 7k. I certainly don't consider myself an expert though, I understand the economy has been good. However I have learned from successes and failures

How much did u start with before getting to over 7k?

 

[Which Doctor]

Make sure you didn't buy mutual buns by accident.

Fuck mutual buns!

 

[ElKarlo]

Fees.

This. Also they mix a lot of crappy bonds in some too. A lot of low raring bonds you normally wouldn't buy.
Plus most MFs are poorly run for the fees they incur

 

[therealdope]

This. Also they mix a lot of crappy bonds in some too. A lot of low raring bonds you normally wouldn't buy.
Plus most MFs are poorly run for the fees they incur

A large volume ETF that tracks the S&P500 and a couple of global weighted ETFs are all some really needs and the fees are all most people need. Mutual funds are just the abyss for fees.

 

[Alech33]

How much did u start with before getting to over 7k?

At first few hundred. It was shortly after brexit it took off. I started investing about 100-200 a week. Sept 2016 I moved money from a mutual fund to Robibin hood bc % wise I realized I was making peanuts there compared to doing it myself. Oct/ nov the market dipped. By Nov 2016 I was at a loss of over $300. When Trump took office though I started seeing numbers go way up so I started getting very aggressive with it. 2017 and early 2018 I just kept putting whatever leftover money after I payed my bills.

 

[ElKarlo]

A large volume ETF that tracks the S&P500 and a couple of global weighted ETFs are all some really needs and the fees are all most people need. Mutual funds are just the abyss for fees.

They are. Or they are full of index funds. I can buy my own funds thank you and not pay a MF fee and then an index fee on top of that.
The last MF I had, its top ten holdings 6 were index funds.

 

[My name is]

Stay away stay far far away

 

[Alech33]

This is what my portfolio looks like atm. The dip that I was reffering to Nov 2016 looks like it barely made a dent bc I've added so much more in the last year and a half. It was actually a huge dip at the time. Also if you're saying that it's only 6.5k that's bc the app doesn't show dividends as change in value rather as money added