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  • From: Da13 3van5
  •   To: starrysky26
  • 2 of 2
  • 5/30/07
  Good information on investing is hard to come by.  It takes a while to become informed.  What has worked for me is to invest in stock mutual funds.  Over the long term, this will give you the best consistant return IMO.  Historically, the stock market has given returns of 10-12 percent.  Over the time it takes for you to retire, you will amass 16 times your original amount invested in inflation adjusted amounts.  This is a rough estimate but is a guide. (I use the rule of 72 for these estimates)
   There are a zillion mutual funds, and some...many.. most are dogs.  The advice I gave my daughter is to invest in a no-load stock index fund with a low cost ratio.  You do not get any benefit from buying funds with a sales commission (load).  Studies have proved this.  A low cost ratio means that expenses won't  be run up, you will have a better return.  The most important is that it be an index fund.  This ensures that you will get an average return.
   The dirty little secret of investing is that most funds do not do as well as average!  The herd instinct is almost always wrong, they invest in good times, buy high, and panic and sell in bad times, sell low.  It doesn't sound right, but if you go for consistant average, you will do much better than the vast herd of investors. I followed this advice, started later than you, and now live off of investments, working only to increase my principal. I have many years until retirement.  You can do this too.

   This advice will get you to a good start,  and keep you from getting fleeced until you become more informed at investing.
Some big names of fund families in no order of preference is Fidelity, T Rowe Price, Dreyfus, but there are many others.

Morningstar, and Motley fool can help you pick something out that will be good for your needs.  Google any and all of these these for more information.
 
 
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