Retirement Income Planning: Mutual Funds
When willing to invest in mutual funds for Supplemental Retirement Income Planning, you have millions of alternatives. It is always important to analyze the plan, its limitations and the risks you will be running, and thus, it would be easier for you to narrow your alternatives. For this matter, it could be helpful to get in contact with a Retirement Income Planning financial professional.
Mutual funds are classified in three main categories that differ in regards to their risks, features and rewards. They are money market funds, bond funds, which also receive the name of fixed income and finally, stock funds, which are also called equity funds. Lets take a deeper look at each one of them.
Money Market Funds can only invest in just some high-quality, short-term investment that be issued by the U.S. government, U.S. corporations and local governments. These funds attempt to keep the value of a share in a fund, called the net asset value (NAV) at a stable $1.00 a share. The returns for these funds have always been lower than the other two kinds of funds. Because of this, money market funds investors have to be aware about the inflation risk. Although Bond Funds are a bit risky than money market ones, most of the time, risks can be controlled with greater certainty than stocks. In addition, due to the fact that there are many types of Bund Funds, their risks and rewards vary greatly. These risks may encompass credit risk, which refers to the possibility that issuers whose bonds are owned by the fund do not pay their debts; interest rate risk and prepayment risk, which is associated to the chance that a bond be retired early. Finally, there are differences between one stock fund and another. For instance, Growth Funds are focused on stocks that provide large capital gains, Income Funds invest in stocks that pay regular dividends, and Sector Funds are specialized in particular industry segments. In general, they present a medium-to-high level of risk.
Thus, people who are planning to invest in a fund that combines growth and income, which are definitely key factors, may find mutual funds an interesting balanced alternative choice for Supplemental Retirement Income Planning.
Lower your risk and turn your mutual funds into ever-growing streams of investment income. You pick the funds; I'll show you how to double or triple your returns ... for free! Read "GROWTH & INCOME: How To Build A Mutual Fund Money Machine" online for free at http://www.Autopilot101.com/free/book_GI/index.htm
Do you invest in stocks? Discover how to invest for high monthly income with less risk than most mutual funds. Get your copy of "MILLIONAIRE INCOME" for free at http://www.Autopilot101.com/free/book_MI/index.htm
More Articles
Plan Your Retirement For Income Through Mutual Fund Investment.
Mutual Fund As Your Alternative Investment Portfolio
Take The Guesswork Out Of Asset Allocation
Be Cautious When Studying Mutual Fund Ratings
The Flip-Flop Asset Allocation Method
Saving Money Through Investing In Mutual Funds
Mutual Funds As A Long Term Investment
Related Products And FREE Videos
More Articles
Commercial Mortgage Refresher Course
... believe. In fact, many banks and financial service institutions offer a variety of options acquiring the funds necessary to make an investment. One of the best ways to fund an income or rental property is by using a commercial mortgage. Most any bank will offer some version of a commercial mortgage.
Commercial Mortgage
A commercial mortgage may be a new term to you, but chances are you ...
Why You Should Buy No-Load Funds!
... fund more - even when the load funds are performing poorly as compared to no-load funds. -Loads are understated by mutual funds. If an investor invests $1000 in a fund with 5% front-end load, the actual investment is only $950. Thus his actual load is $50 in $950 investment - a 5.26% load. If an investor is already invested in a load fund, it doesnt make sense to exit now. The load has already been ...
... incorporate many different types of stocks. The question of whether or not to invest in stocks or mutual funds will primarily come down to the personal expertise and wealth of the individual. Many people will be tempted by the game aspect of buying stock, as well as the chance to invest singularly in a company that is well-known or can be easily researched. The fact is, however, that by the time stocks ...
Ways To Earn Good Profit Out Of Mutual Fund
... mutual funds into ever-growing streams of investment income. You pick the funds; I'll show you how to double or triple your returns ... for free! Read "GROWTH & INCOME: How To Build A Mutual Fund Money Machine" online for free at http://www.Autopilot101.com/free/book_GI/index.htm Do you invest in stocks? Discover how to invest for high monthly income with less risk than most mutual funds. Get your copy ...
What To Look For From Mortgage Lenders
... opportunity for anybody. Working in the finances can often be a very highly paid job although it has its own risks. To be in the profession of mortgage lending is a time-tested job that has withstood the difficult depression to post war to present day boom. Most European economies and the American economy stand largely on the mortgage industry. The mortgage industry plays an important role in the lending ...