Your Questions About How To Invest

George asks…

What is mutual fund, how to invest in MF and what is the best MF to invest at this current market position?

I am a new investor, I want to invest in mutual fund. But I have not any idea regarding MF that means what is MF, is it a safe investment or nor, how to invest in MF etc. So kindly guide me regarding this.

John answers:

A mutual fund in an investment vehicle that pools together money from many investors and allows you to invest in dozens, hundreds, or thousands of companies all at once and so there is less risk. This protects you if any one company or industry runs into trouble. The contents of the fund is chosen by a fund manager(s) or for an index fund tries to mimic the contents of a whole market or section.
You need to think about your risk tolerances in choosing what fund is best for you, not to mention where you are investing through. Both are extremely important. If you want something safer there is something like the Total Stock Market index or S&P 500, but if you want to take on some more risk or some potentially better returns there is a wide range to choose from, such as small or mid-caps, sector specific funds like Energy or Health Care, or international funds like Europe, Pacific, or Emerging Markets. It would be wise to have a diversified portfolio.
As to how safe they are, they are far safer than throwing your money into individual companies and hoping for the best. If you chose a winner you could get a lot more, but if you didn’t you could lose a large amount of your investment. Your time horizon is very important as well. The more time you have the more risk you can take on since you have a chance to recover if the market declines. Ultimately it is your decision though.
Where you put your money is also very important. Some of the best are Vanguard, T. Rowe Price, Fidelity, and Schwab. Avoid the big banks like the plague. Don’t let them rip you off with loads (sales charges) and fees. Check how much the company charges you as an expense ratio. A good one might charge you 0.2-0.8 %. If they charge more than 1% than go somewhere else. And if they charge any kind of 12b-1 fee, hold on to your wallet and RUN. If you want to check, go to a site like
Morningstar or http://finance.yahoo.com and check each fund. Vanguard has some of the lowest expense ratios anywhere.
Many places will hit you with high front end sales loads, ripoff 12b-1 fees and stiff expense ratios. That could rob you of potentially tens or even hundreds of thousands of dollars over your working career. If you want to see a demonstration of this, look at https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost and compare.
Read some basic books to teach you the fundamentals. Three excellent reads are Mutual Funds for Dummies, The Complete Idiot’s Guide to Investing, and Investing for Dummies. You can probably find them in your local library. Before doing anything, make sure you have enough in savings in case things go south for at least 6 months.

Chris asks…

What is the best way to invest in the stock market?

I want to invest into the stock market but I have a few questions. How much should I invest at minimum? What are good stocks to look at now? How can I invest in a way that’s mutually beneficial to myself and the U.S. economy?

John answers:

Register with a stockbroker or investment firm with ties to the stock market. The defining factor when hiring financial assistance is experience with the market in which you invest your money. Stockbrokers can be costly, but they tend to respond quickly to queries about individual stocks.

Lisa asks…

How can I invest my money in fidelity new millenium?

I saw that fidelity new millennium has high growth with limited risk. I have about $5,000 I want to invest, and probably more down the line if this works out.

I just don’t know how this works. Can I just go online to e trade, find the mutual fund and put my money in? Is it the same as investing in say, IBM?

I am very new to all of this, and hear mutual funds are the best way to go, thanks for any help.

John answers:

You can go on line to Fidelity.com, open an account, deposit your 5k, and buy the fund. It is that easy. That is the only place you can buy it without paying a fee to do so.

Joseph asks…

How do people invest their hard earned money? Is there a website or something?

I am new to investing. There fore I am not really familiar with many things. But I want to invest soon. I have about $3,000. in the bank. How much should I invest? Also is there a website where people go and invest or do I have to walk into the company myself and invest ?

If Investing is about investing in the company that will give you the most returns, isn’t it easy just to invest in Let’s say Sony or Apple or HP .If i am completely off , why so? if not, what makes this investing trickier?

John answers:

The purpose of our investment is savings for our future
There is a risk element if we want to earn more interest / income so that our
investment will grow rapidly. But there is a risk factor also. So if you want to earn more
at short period you have to face risk also. The risk is attached with the type of investment
Bank deposit / investment in bonds etc – risk free
Investment in Gold / real estate – medium risk – income will be more
Investment in stock – high risk
requires good experience in selecting the stock.
Compound interest in bank deposit is better and risk free and having good liquidity
any time you can easily cash it.
Good books and financial magazines are available you may go through

Richard asks…

Should I invest in professional resumes or is presentation during the interview more important?

My resume already gets accepted to interviews. Some. A few. But I want to get the top notch interviews. What can I do? How much does it cost? I want to invest in something great, affordable. Worth it. Great ratings.

ANything on interview skills. I want confidence and great content to leak out of me! I want to be on fire baby!

John answers:

If you want to rework your resume, your local public library will have free workshops to do that. There are certainly good professional resume writers that are worth the money but you can pretty much get the same results with the free services and a little bit of effort on your part. Practice makes perfect. Look for interview questions from the internet, write and practice responses to those questions, the more you practice, the more confidence you will have. Brainstorm questions to ask when they inevitably ask you if you have any questions for them. Preparation means you won’t lose the moment by pausing during the interview. Above all, remember that it’s relating, it’s conversing so be comfortable and show that you are a good person to work with.

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