Should You Invest in Mutual Funds?

Bill Gates probably doesn't invest in mutual fundsaccount to a couple of mutual funds within a fund
(funds), maybe because most of his money isfamily.
tied up in Microsoft stock. Warren Buffet madeIf you want to invest in stocks and/or bonds, but
his billions by managing investments, so he doesdon't know how to invest in them, join the crowd
not need their help, either. But, if you haveand do it the sensible and easy way with funds.
money to invest and don't really know how toIf you have a lump sum of money to invest
invest and manage an investment portfolio, youfrom a retirement plan, a CD that matured or
should consider investing in mutual funds. Millions offrom an inheritance, look no further. For example,
average investors do.if you leave your job where you had money in a
Keep in mind that mutual funds are designed for401k, you can move it and avoid taxes and
folks who want professional investmentpenalties with a direct rollover to a mutual fund
management at a moderate cost. These are notfamily.
short-term investments, but rather are for peopleIf you are retired and want to earn a higher
with longer-term investment horizons. Once youreturn with relative safety, try bond funds in
have cash reserves in the bank for short termaddition to money market funds. When you want
needs like emergencies, you are ready to invest.to receive a monthly income, they will send you
Should you invest in mutual funds? If one or morethe amount you specify.
of the following apply to you, you probably should.If you want an investment in real estate, oil
If you want to accumulate a nest egg for& gas, or gold the easy way, invest in
retirement, give these investment packagesmutual funds and let them deal with the details.
consideration. For example, if you have a typicalIt doesn't matter if you are young or old, rich or
401k plan at work, most of the investmentof modest means, conservative or aggressive as
options available to you are mutual funds.an investor. You need an investment portfolio that
If you decide to open a traditional IRA or Rothcontains a variety of investment types. Unless
IRA, consider going with a major mutual fundyou really know how to invest and can manage
family. This will give you a wide array ofyour own stocks, bonds, and money market
investment options, from safe and conservativesecurities...you should invest in mutual funds.
to aggressive and growth oriented.Finally, if you don't know much about
If you want to start slow and learn how to investinvesting...you're probably a red-blooded American.
as you go, you should invest in mutual funds. ForAs a financial planner I worked with folks from all
example, you can set things up so that $100 awalks of life. Few knew how to invest on their
month automatically flows from your checkingown, so I often recommended mutual funds.