Mutual Funds for Beginners
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- เผยแพร่เมื่อ 5 มิ.ย. 2024
- Mutual funds for beginners - explained with simple terms in an easy to understand way! Mutual funds are an essential part of any well balanced portfolio. But if you're new to the world of investing, you may not be familiar with them. Today I'm having a conversation with Andy Panko of @RetirementPlanningEducation for a conversation about mutual funds.
0:00 - Intro
1:10 - What is a mutual fund?
1:45 - Why buy mutual funds?
3:06 - What is diversification?
4:22 - Who are mutual funds best suited for?
5:20 - What are the different types of mutual funds?
6:18 - How do you choose which mutual fund to buy?
8:54 - What's the difference between small cap and large cap?
10:46 - What are the differences between brokerages?
12:16 - How much money do I need to get started with mutual funds?
13:08 - Do I need to pay any fees when buying or selling mutual funds?
15:15 - What are expense ratios?
16:42 - Final thoughts
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FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY. NOT LEGAL OR FINANCIAL ADVICE. The information provided in this video and on this channel is for educational and informational purposes only. It is not intended to be a substitute for legal or financial advice that can be provided by your own attorney, accountant, and/or financial advisor. Practical Personal Finance accepts no liability whatsoever for any losses or damages arising from your own personal financial decisions. You are advised to consult with your financial advisor, tax professional, or attorney regarding any and all financial decisions involving your own income and taxes.
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Awesome information! 😜 Thanks for having me on!
Haha I’m pinning this comment for visibility!!
Hello Andy and thank you for sharing information regarding mutual funds. Who can I reach in regards to investing in mutual funds?
@@jj2389 How to go about finding the right advisor for you and your needs is unfortunately not an easy or simple answer. But I did a three-part video series that discusses all you need to know, and where to go to search for someone who's the right fit for you: th-cam.com/video/Fv3CAkT4Qa8/w-d-xo.html
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Angela Lynn Schilling is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon.
I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sonya lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@ThomasWilliam-sw8ms Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@user-vk8vu4li2x Who’s the person guiding you
@@ThomasWilliam-sw8ms credits to KRISTIN GAIL CUNNINGHAM, one of the best portfolio managers out there. she's well known, you should look her up
@@user-vk8vu4li2x Thank you, I just checked her out and I have sent her an email. I hope she gets back to me soon.
Very clear and helpful : thanks! Didn’t realise mutual funds had such high fees!
BTW does each country have different index funds and are they limited to just one country’s stocks? Or are there more global’ index funds that track multiple countries’ stocks or index funds just for emerging markets etc ?
It’s a good time to buy in on the market, so seize the opportunity to purchase stocks on sales.
I think stocks will plummet further before actually experiencing steady growth and there are still quite a few stocks that makes for a good buy this season, you just have to do your research, but to be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment manager for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends.
my portfolio is down over 23% j and It’s been that way fsince 2022 and I really could use professional help, I’m close to retirement. have you worked with an asset manager before and could recommend any?
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sonya looks the part but i'd do my due diligence. I set up a call, tnks.
One of the first times I didn't want to have a breakdown hearing folks talk about investments. Thank you!
And this is why I’ll never have money. I can’t even understand a “for beginners” video! 😩😆🤣
Not your fault if you went to public school 😭😭 just keep trying breaking down by pieces instead of trying to digest the whole subject.
Glean what you can. Take notes on terms and concepts you don’t know yet and then research those. Then you should rewatch this video. It will build your foundation and allow you to digest more. You’ll get fast over time.
😂😂😂
💀☠️🤣🤣😂😂😂
Thats not why its because you don't believe you're capable of of obtaining a significant amount of cash
I've been investing for over 40 years. This is an outstanding explainer of mutual funds.
Thank you!!! Andy is such a great resource.
Then wht are you doing on this video?
I’m studying for the series 6 licensing exam and this made understanding mutual funds finally click. THANK YOU for making this video
Excellent video! I know a lot more about mutual funds now. I seriously didn’t even know what a mutual fund was.. thanks!
Thank you for this video! It is so easy to follow for anyone who wants to get into investing and doesn’t know where to start.
Thank you for this. I’m just starting my research into understanding investing.
First time I hear someone explaining financial terms is layman's term. Thank you so much
Easiest explanation I’ve heard hands down
Wow very in depth video! Very useful information about mutual funds
Appreciate that Daniel!
Thanks for the video really informative
Great breakdown of mutual funds! Both of these gentleman are outstanding financial wisdom givers.
I truly appreciate that David!!
Appreciate your efforts
What i do is invest into stocks and other financial assets online but stocks is most effective for high profits monthly thanks to my fiduciary
How can I also generate profits, do you mind showing me your fiduciary
I know Mr Ravies, although not personally but he manages my sister’s investments as her fiduciary, she speaks highly of his expertise
Thank you so much for this video! Like another viewer stated, this video was not overwhelming. It was done methodically with the straight forward questions asked by the creator! Thanks again for educating us!
Hi Richel, I truly appreciate you watching and leaving such a nice comment!! It's not everyday someone recognizes the person asking the questions, and I definitely planned them out very carefully. I'm happy you got some new knowledge!
Thank you. I've researched this extensively and haven't found any managed mutual fund that didn't charge yearly management fees. I expect to pay for their expertise but I want to know those fees prior to signing up. Thanks again!
Very informative!
Great information
Solid breakdown bro!!
Appreciate it!
Thanks!
Glad it was helpful!!
How do you read Mutual Fund “statement sheets”? Please do a video on this.
great video
I freakin love you guys... my life is about change forever
Get it!!! :D
Hey, thanks for taking time to put this together for beginners. I have one question, do we get to have a transparency level of our fund investment from the manager, to know where exactly our money is going into ?
Hey Karthik, thanks for watching and for this awesome question! Sorry it took me a little while to reply. Mutual funds have something called a propsectus, which is a document that details the fund's objectives, risks, fees, and expenses. Seems like this could be what you're searching for!
@ *Karthik* Have you discovered satisfactory answer or still looking for pertinent information about prospective mutual/index fund investments?
I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.
Thanks for info it was helpful. How do you sell mutual funds? How do you choose lots to sell. Unlike stock what am I selling? Selling 1st lots is t that selling it all? So confused.
Investing in mutual funds provides a structured and diversified strategy for wealth building, managed by professional fund managers. Despite the associated costs and certain limitations, the advantages of diversification, expert management, and accessibility make mutual funds a favored option for attaining various financial objectives.
ADBE, VWINX and FSPGX are all still good buy, but what do I know I’m not a financial advisor lol
Exactly, I used to doubt the value of a financial advisor until my wife's company assigned her an investment adviser in 2020. Honestly, it’s been the best financial decision I’ve made. It helped tremendously; I went from barely making any profit to having a well-diversified portfolio that has grown significantly, with gains exceeding $850k.
I’ve been worried sick about the current state of my portfolio, who is your advisor?
Sharon Lee Peoples is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Can we do sip or lumsum investment in mutual fund?
Great question! You can invest in mutual funds either way, little by little or all at once. Personally, I would do it little by little rather than in one lump sum payment, just in case the market takes a dive shortly after I invest.
I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly.
Thanks to fire movement.
Great job with your husband! I bet you’re living your best life right now.
I’m a young dad, I’m really glad to hear your story it inspires me.
What’s FIRE movement please.?
@@mayornevzorin4883 FIRE means Financial Independence Retire Early .
It’s been a movement teaching people financial independent and how to retire debt free through solid investment and frugal lifestyle.
@@kidijatesfay2010
Thanks for replying I will read more about the FIRE movement.
@@kidijatesfay2010 Your story is inspiring. I’m 38 trying to achieve this goal you achieved.
Share some tips please so others can actually learn.
is a high expense ratio good or bad?
High expense ratios are bad! You want the expense ratio to be as low as possible.
@@PracticalPersonalFinance ok thx
A family member recommended a broker they have used for years and like so I've discussed buying Mutual Funds through him. He told me the buy in will be 3% upfront which he gets paid 1% out of that. I asked about a yearly management fee and he told me there isn't a yearly fee. Once I pay the one fee I'll never be charged anymore fees for a managed Fund. Is that correct? Everything I've read talks about additional fees.
Hey there, thanks for watching and thanks for the great question! Every manager and every fund is different, so what he's telling you may be correct. However, he may only be referring to his piece of the pie as a financial adviser. There's a whole other layer here that you need to consider. Whatever mutual funds your advisor selects and purchases shares of on your behalf will almost certainly have fees attached to them. They might be a "no-load" fund, meaning you're not charged a percentage for buying and selling shares, but managed mutual funds all have annual expenses (many of which are considered marketing expenses and paid out to financial advisors who recommend the fund to their clients) and those expenses will eat away at your annual returns. The only way to learn about those expenses is to ask to see the prospectus for the individual managed fund. That will provide you with all the numbers.
@ *nana* Your family may have inadvertently given you costly advice. That 3% upfront and his 1% is a pretty penny you could have avoided and there may be additional costs that salesman did not disclose. What is the name and 5 letter ticker of that mutual fund he sold to you?
@@alrocky I decided not to go with him. All the research I did told me he was mistaken about the fees.
@@nana820able Good to hear and good for you!
So how do you make money?
same way you do through any type of stock trading
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
Don’t do it’s because there is a lot of fees that people get their hands on ur money it’s a big gamble and not worth it just get a Tax free savings account!
Small cap is less than $25 MILLION, not $25 BILLION
8:10
Dave Ramsey
Buy at lowest price possible, sell in 20 years
Some how this guy looks like Ryan Gosling(The Big Short Look)
I don't disagree!
He look like dude from Wayne’s world more then him
Very informative!
Glad it was helpful!