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Originally Posted by recycled sixtie
It depends on your tolerance of risk. If you buy now the stock market is high and cannot stay at this level forever. It is very disconcerting to buy high and watch your investments go down in value. Likely they will go up again.
I do like mutual funds as the $$$ is professionally managed. The prof. stock pickers are able to choose stocks which they think will do well in the long run. Buying ETFs is a low cost way of buying investments. The commission is cheaper than buying mutual funds.
A little knowledge is a dangerous thing particularly with investments.
If you go to a financial planner then they may try to influence you into buying mutual funds because they get paid via commissions. A fee based financial planner is compensated with an hourly fee. This may suit you as he /she will give you direction as to how you are doing financially and what level of preparation you have for retirement. I actually have a fin. planner who I invest with with the $$$ going into mutual funds. I get separate statements from both so I know the $$$ are actually invested in the mutual fund co. and not going into the financial planner's pocket.
If you don't want risk then guaranteed returns can be had from bank deposits but returns are puny.
Be very careful of going with somebody unless they have a good name and references. In terms of mutual funds I spread $$$ around to more than one organization. I like Fidelity, Vanguard, Templeton to name a few. Don't put all your eggs in one basket.
$$$ cost averaging is a good way to go. Buying a specific amount each month averages out the peaks and valleys of the market.
Feel free to pm me if you need any more advice. I took the Can. Securities Course back in the 1960's. It has served me well on the understanding of the various investment vehicles etc.
Cheers,
Guy
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Just to let you know that I have no financial interest in what I say or recommend.
Return on investment in stock market/mutuals/etfs are ball park 8.5%. Investing in real estate typically 5.5%. Long term commitment is the way to go. If you are likely to need $$$ at short notice then you need something more liquid. Diversification is key.
Life insurance get straight term. If you get whole life ins. then there is a savings component but rate of return is small.
Proceed with caution!
Guy