| Okay. So you want to begin investing some of your | | | | portfolio, any fees related to the account, and their |
| money in the stock market. The problem is you have | | | | procedures for funding an account with them. You |
| no idea where to begin. The quickest way to enter | | | | must certainly consider whether creating an Individual |
| this form of investing is through mutual funds. There | | | | Retirement Account with your account at that |
| are thousands of different mutual funds available to | | | | mutual fund is in your best interest. Seek advice from |
| all investors. You've probably seen or read the ads | | | | your tax preparer in this regard. |
| for them on television, in magazines and in | | | | There may be minimum amount limits for opening an |
| newspapers. But, how do you decide which ones to | | | | account. Some go as low as fifty dollars, and some |
| invest in? | | | | as high as two thousand dollars. Screen these |
| First, determine which industry, or sector of the | | | | amounts when doing your preliminary research. The |
| economy you would be interested in following or | | | | next step in investing in mutual funds is to establish a |
| paying attention to, i.e., finance, utilities, commodities, | | | | monthly amount that you will be depositing into your |
| manufacturing, etc. Next, check your local library, or | | | | mutual fund directly from your checking or savings |
| on the internet for a mutual fund rating system | | | | account. Most funds have this capability and will send |
| which will rate the various mutual funds in each | | | | you the information in order to establish this process. |
| sector. Look for the best rated funds in the industry | | | | I recommend that you do so for a couple of reasons: |
| you are interested in and take down the contact | | | | you pay yourself first, every month, and once it |
| information for each. You will also make note of | | | | becomes established, it becomes automatic and you |
| whether each fund is a "load" or "no-load" fund. It | | | | are building your wealth monthly without being aware |
| would be best to focus on "no-load" funds to | | | | of it. |
| conserve your money. "Load" funds have additional | | | | Final step for you is to always monitor the |
| expenses that they charge investors each year that | | | | performance of your mutual fund. Quarterly |
| can cut into any profits you may gain. Best to leave | | | | statements will be sent to you. Review them and |
| those funds off your list. | | | | make any adjustments if need be and if allowed |
| Call or email the funds directly and request | | | | through changing mutual funds within that family of |
| information for a new investor into their fund. They | | | | funds. Over time, you will be able to increase the |
| will send the pertinent information reflecting their past | | | | value of your investment. Always remember that |
| history on performance, minimum investment | | | | you are the captain of your financial ship, so keep |
| amount, management team, stocks currently in their | | | | aware and lead it with a steady hand. |