mutual fund

[mommycakes66]

I'm thinking I'd like to invest in a or several mutual funds. I saw some online I am interested. A couple through Vanguard and a couple through T Rowe Price. It looks fairly easy to set up an account online but I've never done this before. I am seeing minimum investment of $3,000.00 but I am not sure if this is per fund or whether I can divide that amount up between a couple funds I would choose with them. Has anyone done this before? Interested and excited but feeling leery to hop right in so naive.

[disneysteve]

I'm thinking I'd like to invest in a or several mutual funds. I saw some online I am interested. A couple through Vanguard and a couple through T Rowe Price. It looks fairly easy to set up an account online but I've never done this before. I am seeing minimum investment of $3,000.00 but I am not sure if this is per fund or whether I can divide that amount up between a couple funds I would choose with them. Has anyone done this before? Interested and excited but feeling leery to hop right in so naive.

Yes, the minimum investment is per fund, not per account. So if, for example, you want to invest in the Vanguard S&P 500 Index Fund, you need to open that account with a minimum of $3,000 into that fund.

That said, I'd suggest backing up a bit. From your post, it doesn't really sound like you have any plan. You can't just go off and buy a bunch of mutual funds. If you tell us more about your situation, we'd be happy to help you formulate an actual plan. How old are you? Married? Are you participating in an employer-sponsored retirement plan like a 401k? Do you have any debt? Do you have an emergency fund?

[mommycakes66]

Thank you Steve married 4 kids disabled. I have an IRA with MetLife, a Roth IRA since my income is no longer earned seems I don't qualify for either of those. I have $75,000.00 just sitting in the bank doing nothing. The bank calls me every month and I now I have someone from Edward Jones knocking on my door.

[mommycakes66]

In the past I have invested in CD's which I see are not making any interest now and I purchased savings bonds. I am thinking mutual funds just starting out with a small amount of money but going moderate to high risk and take it from there. I'd rather go with a reputable company and just invest directly and avoid having to share my earnings with a middle man.

[mommycakes66]

My age is 48 my disability is up for reconsideration this July. I am not physically able to work if that is discontinued I will potentially be in a compromised financial situation with no way to make an income.

[feh]

Interested and excited but feeling leery to hop right in so naive.

Before you do anything, educate yourself on the basics. Start here: http://www.bogleheads.org/wiki/Bogle...g_start-up_kit

[Petunia 100]

Thank you Steve married 4 kids disabled. I have an IRA with MetLife, a Roth IRA since my income is no longer earned seems I don't qualify for either of those. I have $75,000.00 just sitting in the bank doing nothing. The bank calls me every month and I now I have someone from Edward Jones knocking on my door.

I would immediately move my IRA away from the insurance company and to Vanguard. Vanguard can help you with the paperwork.

[mommycakes66]

I have wondered about moving that IRA. They transferred it over from the insurance side to an investment side of Metlife. I notice they are starting to charge me fees. I just opened my statement yesterday and there was a -114.00 fee. I get paperwork in the mail so often related to all the trading they are doing that it makes me a nervous wreck. The account itself is pretty much sitting still.It has increased only by a small amount in the last two and a half years.

[Petunia 100]

I have wondered about moving that IRA. They transferred it over from the insurance side to an investment side of Metlife. I notice they are starting to charge me fees. I just opened my statement yesterday and there was a -114.00 fee. I get paperwork in the mail so often related to all the trading they are doing that it makes me a nervous wreck. The account itself is pretty much sitting still.It has increased only by a small amount in the last two and a half years.

That $114 was a direct fee. The underlying investments have fees, too. You pay those indirectly so they are harder to see.

The markets have been up in the last two and a half years, and your money has not grown much? That is another good reason to vote with your feet.

[disneysteve]

I would immediately move my IRA away from the insurance company and to Vanguard. Vanguard can help you with the paperwork.

I couldn't agree more. Nobody, under any circumstances, ever, for any reason whatsoever, should ever invest with an insurance company.

I hope I'm not being too vague here.

Call Vanguard. Tell them you need to do a rollover IRA. They will walk you through the process.

[disneysteve]

Thank you Steve married 4 kids disabled. I have an IRA with MetLife, a Roth IRA since my income is no longer earned seems I don't qualify for either of those. I have $75,000.00 just sitting in the bank doing nothing. The bank calls me every month and I now I have someone from Edward Jones knocking on my door.

No, you can't contribute to a Roth if you have no earned income.

What is this 75K for? What's your timeline - when will you need to access this money?

Are you debt-free other than your mortgage?

Do you have an adequate emergency fund or is your EF part of this money?

What does the rest of your portfolio look like? Is your spouse saving adequately for retirement?

[mommycakes66]

The 75,000 has been sitting in the bank for two years it's what I received as my back pay from SSDI. I have not spent a dime of it and the money I do get monthly goes totally to feeding my kids. Hard to believe but true. My biggest expense right now is groceries. I do use a charge card for everything but pay that off as it comes I am less than $2,000.00 on credit and no other debt. My husband pays our mortgage and car payments. It seems like a wonderful opportunity for me to invest. Since he cannot save and would spend having him pay everything leaves little left over to waste.
I go without material things for the most part or purchase second hand and save tons. I also try to get whatever money I can out of the things we have that we no longer need.
Prior to becoming disabled I made about $15,000.00 in sales on ebay just from our used items over the period of maybe 3-4 years. Since becoming ill though I have slowed way down with that.
So the $75,000.00 plus the $46,000 IRA and Roth just $3,000.00 is all I have personally. I have the wage earning husband. The uncertainty of my own future of whether I will ever be able to work again which is discouraging and makes me feel vulnerable. . I am emotionally motivated by the fact that I do want to see my money increasing not dwindling.

[mommycakes66]

The IRA started out at 43 thousand something and is now 45 thousand something in about a 2 1/2 yr period. The representative says they are real happy with it and think it's doing great. I haven't felt that impressed personally.

[feh]

The IRA started out at 43 thousand something and is now 45 thousand something in about a 2 1/2 yr period. The representative says they are real happy with it and think it's doing great. I haven't felt that impressed personally.

There's no way to say if that return is acceptable or not, without knowing how it was invested. If it was in short term bonds, that might be ok. If it was in equities, it's horrible.

Ignore what the rep tells you. Remember - they are sales people, making their living off of you.

[mommycakes66]

I'm looking at my statement from January. I'm seeing Bank Deposits totaling about 2 thousand dollars. Then 11 mutual funds after that. It makes me feel sick to look at it.