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<blockquote data-quote="Cattle Rack Rancher" data-source="post: 507258" data-attributes="member: 245"><p>I used to be in the Financial Planning business. For the most part, those people make their money on commissions. There are basically three kinds of investments. Stocks, Bonds and Money Markets. All mutual funds are a combination of these. The big drawback to funds is that there are management fees attached on a quarterly basis and often Deferred Sales Charge penalties if you get nervous and decide to withdraw your funds. Overall, only 50% of mutual funds outperform the index, which is a list of supposedly 'best' companies. (S + P, Dow Jones, Nasdaq) So, my take has always been that its cheaper to spend one commission and buy Index Participation Units and save on the commissions and management fees of mutual funds. The symbol for the Nasdaq index is <strong>QQQQ</strong>, The S + P is <strong>SPD</strong> ( I think) and the Dow Jones is <strong>DIA</strong>. The first thing you need to do is figure out what your time horizon is. Alot of people make the mistake of saying that they are retiring on a certain date and then thinking that at that point all their money should be out of the market. What this does is shortens up the time horizon that the person has to have their money working for them. What you want to do is use the volatility of the stock market when you are younger to maximize your gains (Stocks always outperform bonds and money markets in the long term) and over time slowly move your funds into less volatile bonds and money markets as your timeline to retirement decreases. The most successful clients that I had were almost 100% in stocks over the long term. The key is that its a roller coaster ride on the stock market. Just buy good companies and don't panic. Good Luck.</p></blockquote><p></p>
[QUOTE="Cattle Rack Rancher, post: 507258, member: 245"] I used to be in the Financial Planning business. For the most part, those people make their money on commissions. There are basically three kinds of investments. Stocks, Bonds and Money Markets. All mutual funds are a combination of these. The big drawback to funds is that there are management fees attached on a quarterly basis and often Deferred Sales Charge penalties if you get nervous and decide to withdraw your funds. Overall, only 50% of mutual funds outperform the index, which is a list of supposedly 'best' companies. (S + P, Dow Jones, Nasdaq) So, my take has always been that its cheaper to spend one commission and buy Index Participation Units and save on the commissions and management fees of mutual funds. The symbol for the Nasdaq index is [b]QQQQ[/b], The S + P is [b]SPD[/b] ( I think) and the Dow Jones is [b]DIA[/b]. The first thing you need to do is figure out what your time horizon is. Alot of people make the mistake of saying that they are retiring on a certain date and then thinking that at that point all their money should be out of the market. What this does is shortens up the time horizon that the person has to have their money working for them. What you want to do is use the volatility of the stock market when you are younger to maximize your gains (Stocks always outperform bonds and money markets in the long term) and over time slowly move your funds into less volatile bonds and money markets as your timeline to retirement decreases. The most successful clients that I had were almost 100% in stocks over the long term. The key is that its a roller coaster ride on the stock market. Just buy good companies and don't panic. Good Luck. [/QUOTE]
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