Mutual Funds

[johnf]

Question for Financials Gurus: If I were to buy four or five no-load mutual funds now, which would they be? Funds that are at bargain prices, won't tank, will reassume their value shortly, and provide some steady (not necessarily spectacular) growth. I was thinking of the Wellington Fund and the Templeton Global Bond Fund. Any suggestions? advice?

[down_to_business]

Well johnf.. I don't think anything exists that meets your specific requirements, but I am a big fan of the advice of Scott Burns and his couch potato investing. He recommends the following:

 

With 4:

1/4—Vanguard Inflation-Protected Securities (VIPSX)

1/4—Vanguard Total Stock Mkt Idx (VTSMX)

1/4—Vanguard Total Intl Stock Index (VGTSX)

1/4—American Century International Bond (BEGBX)

 

 

or with 5:

1/5—Vanguard Inflation-Protected Securities (VIPSX)

1/5—Vanguard Total Stock Mkt Idx (VTSMX)

1/5—Vanguard Total Intl Stock Index (VGTSX)

1/5—American Century International Bond (BEGBX)

1/5—Vanguard REIT Index (VGSIX)

[BaronArtz]

I like First Eagle International Fund, managed by Jean Marie Eveillard. It's an actively managed value-oriented equity fund with a global focus. Excellent team and track record.

[Kevin Slater]

Are you set on mutual funds, or willing to consider electronically traded funds (ETFs), which generally have lower management fees and allow for intra-day trading? You do pay a commission on buys and sells, but that's what, $8? If you're planning on holding for any period of time, the lower fees may make ETFs a better option.

 

Kevin Slater

[+ glutes]

Cash and gold rule.

[jackboy48]

I'm thinking that maybe your expectations are a little unrealistic, after all it was only a few years ago that General Motors actually went under, which I had always thought would only happen at the Apocalypse. Personally I invest with Fidelity which has a website that provides a tremendous amount of info about almost every fund that is currently available (the actual holdings, history of performance in various market, ratings by various agencies, etc). They also have regional offices where you can talk face to face with an advisor who can usually break things down to a fairly comprehensible level, or you can contact an advisor at a call center. I also like having a single account that can hold almost any type of investment. I can keep track of things easily and do my taxes with minimal pain. It's also very easy to transfer funds at Fidelity, after the minimal holding time, if you don't like how a particular fund or stock is doing. The fees are minimal and decrease as your holdings grow. Some of my friends use Schwab, some use Vanguard. They're all geared to single investors,

and provide similar accounts and info. I abhor financial planners and Fidelity has given me the independence that I need. I'm a big Suzie Orman fan, DVR all her shows, and read all her books. I also keep a few reference books on hand, particularly the one that is put out by the NY Times. Good luck, and if you do some dollar cost averaging, you can limit the pain if things don't go the way you hoped. It would be interesting to know if you are doing this within a regular IRA, or a Roth?

[Kevin Slater]

I'm a big fan of Fidelity as well, have been for years.

 

One good, short read on the topic of investing is The Elements of Investing, modeled after Strunk and White's The Elements of Style. It doesn't tell you a single thing you don't already know, but reminds you of the fundamentals and takes some of the anxiety out of financial planning in a very non-threatening way. It also lists several specific funds (and ETFs!) that adhere to the principles the book commends to you.

 

Kevin Slater

[+ azdr0710]

Vanguard, though very big, has a tradition of low costs and investor-oriented service......and USAA is fantastic in a conservative sort of way - don't know if you have to be military to invest with them.....and if you ARE/were military, please get your insurance through USAA if you aren't doing that already....they are the BEST!!!!......

[jackboy48]

Vanguard, though very big, has a tradition of low costs and investor-oriented service......and USAA is fantastic in a conservative sort of way - don't know if you have to be military to invest with them.....and if you ARE/were military, please get your insurance through USAA if you aren't doing that already....they are the BEST!!!!......

 

I was very proud of gaining the perk of USAA membership when I finally became a commissioned officer. I converted almost everything financial to USAA, imcluding savings, investments, credit card, and insurance. Then I really needed them after a major hurricane struck my community. My home had some damage, but was safe and livable. A few days later one of my cars was run over by a truck clearing the rubble. USAA asked me to postpone my claims for several months, since so many people were homeless and destitute. I went ahead, made necessary repairs and finally made my claims. The level of rudeness and refusal to make me whole was unbelievable. I had to hire a lawyer and spend thousands to settle my claims (which did include the legal fees). To add insult to injury, they surreptitiously damaged my credit report until I had to hire another lawyer to clear up that mess. Many, many other companies now provide the level of service which once made USAA well respected. And now, with so many discount stores, there is no particular advantage to the PX or the Class Six, let alone USAA foolishness.

[Guest Bauer]

I like First Eagle International Fund, managed by Jean Marie Eveillard. It's an actively managed value-oriented equity fund with a global focus. Excellent team and track record.

I'll need to check into that.

[Guest Bauer]

I'm a big Suzie Orman fan, DVR all her shows, and read all her books. I also keep a few reference books on hand, particularly the one that is put out by the NY Times. Good luck, and if you do some dollar cost averaging, you can limit the pain if things don't go the way you hoped. It would be interesting to know if you are doing this within a regular IRA, or a Roth?

Refresh my memory. Is she a fan of both, the Roth and the IRA?

 

(The Independent Retirement Account, rather than the Irish Republican Army ;-)