Please #Forgive Me for Offending You
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#Teaching Finances to your #Children
February 17, 2018
  1. Pray that God guides your thoughts in selecting the correct mutual funds. There are many choices; too many to count!
  2. Target a particular investment class.
  3. Review the fund and examine its performance level. The performance level is defined as the investment return in one, three, and five years. Identify those funds that have a high investment return for those particular years. This is an important step because you will see the difference between the funds. Some outperform others. Knowing this will help you make a decision because it will decrease your options immediately.
  4. Review the volatility (risk) of the fund. The volatility is measured in the term Beta. Beta measures an investment return (price movement) relative to the overall market of the index.
  5. Read and review the mutual fund perspective and purpose. This will give you an overview of the type of fund as well as the fund’s investment focus.
  6. Purchase the funds and invest in them monthly, continuously. You will need to invest these funds in an IRA (Individual Retirement Account) or in a savings plan from your company called 401(k). If you don’t have either one of these, call any investment firm, and they will set you up immediately.
  7. Review your choices semiannually. Only sell funds if you find that fund is lagging behind its peers or other funds in the same investment class. Give the mutual fund a chance before selling. I normally wait nine to twelve months before I make changes in my portfolio, sometimes longer than that.

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