If you know little about how to invest, never fear. Lifecycle
funds are here to save your day. Until you learn how to invest, keep it
simple with lifecycle funds.
Your 401(k) at work might offer lifecycle funds. Numerous fund families feature these relatively new forms of balanced mutual funds. Why? Because most people need to invest, but don't know how to invest. They don't want to get hurt by making major investment mistakes, but they want to earn higher returns than they can get at the bank. Enter, balanced mutual funds called lifecycle funds.
If you are clueless, you don't know stocks from bonds from
money market securities. The problem is that it takes time to learn
investment basics. Meanwhile, if you want to get ahead, you need to
start investing as soon as possible.
If you have spent your years sitting on the investing sidelines as a saver vs. an investor, take your first step into the unknown with a lifecycle fund. Take it slow and easy if you are the cautious type.
Here's how to invest in lifecycle funds. Very simply, these mutual funds are labeled as being CONSERVATIVE, MODERATE, or AGGRESSIVE. Just pick the category that fits you. Professional money managers make all of the investment decisions for you. The conservative funds will have you mostly invested in safe money market securities, and bond funds. Moderate lifecycle funds invest to give you a balanced portfolio of both bond investments and stock investments. Aggressive funds are heavily invested in stocks.
Don't invest all of your money in any single mutual fund. Start with a modest investment, and consider adding to it over time, like once a quarter.
All investments are subject to risk, but if you don't invest don't expect to really get ahead. Inflation and taxes can eat up the interest you earn in a bank savings account. Start investing at your own pace, and monitor your progress.
With a bit of time and effort you can learn how to invest. Meanwhile, get started with balanced mutual funds, like lifecycle funds.
Your 401(k) at work might offer lifecycle funds. Numerous fund families feature these relatively new forms of balanced mutual funds. Why? Because most people need to invest, but don't know how to invest. They don't want to get hurt by making major investment mistakes, but they want to earn higher returns than they can get at the bank. Enter, balanced mutual funds called lifecycle funds.
If you have spent your years sitting on the investing sidelines as a saver vs. an investor, take your first step into the unknown with a lifecycle fund. Take it slow and easy if you are the cautious type.
Here's how to invest in lifecycle funds. Very simply, these mutual funds are labeled as being CONSERVATIVE, MODERATE, or AGGRESSIVE. Just pick the category that fits you. Professional money managers make all of the investment decisions for you. The conservative funds will have you mostly invested in safe money market securities, and bond funds. Moderate lifecycle funds invest to give you a balanced portfolio of both bond investments and stock investments. Aggressive funds are heavily invested in stocks.
Don't invest all of your money in any single mutual fund. Start with a modest investment, and consider adding to it over time, like once a quarter.
All investments are subject to risk, but if you don't invest don't expect to really get ahead. Inflation and taxes can eat up the interest you earn in a bank savings account. Start investing at your own pace, and monitor your progress.
With a bit of time and effort you can learn how to invest. Meanwhile, get started with balanced mutual funds, like lifecycle funds.
A retired financial planner, James Leitz has an MBA (finance) and
35 years of investing experience. For 20 years he advised individual
investors, working directly with them helping them to reach their
financial goals.
Article Source: http://EzineArticles.com/2063736
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