Is now a good time to invest in mutal funds?

Question

I'm 20 and interested in mutual funds. But is it a good time to invest in mutual funds? with the stock market being hit hard latley and fear of a recection soon, Would it be a good time to start or should I wait a lil longer before I start investing.

Answer 1

Listen, the rich get richer in times like these. Everything is on sale! Yes this is a scary market, but everyone is running off and liquidating their positions. As the price falls, dollar cost average, and when the market turns around, you sit back and watch your gains grow. But dont be too greedy, take some off the table every 10 or 20%.

Answer 2

80% of the expert mutual fund money managers do not outperform the S and P 500 Index Fund.

Now is an excellent time to start dollar cost averaging in the S and P 500, or a age targeted retirement account.

T. Rowe Price, Fidelity, or Vanguard are a good choice. Vanguard has the lowest fees and all of these funds are no load funds. Meaning you pay no sales charge. Just call the 1-800 number and ask for information about opening an account. Ask about the Age Target Retirement Fund.

The financial world is filled with predators ( account representatives ) who are excellent at taking money out of your account and putting it in theirs.

Don't be fooled.

If you start saving now in your own IRA you will be way ahead of the curve.

Do your own homework or maybe take a class in personal finance at the local college.

Answer 3

All time is right for investments. If you wish to be in mutual fund, invest regularly, for long term and check your fund performance every two months. Quit the fund if it returns low for two consecutive quarters.

Look into www.morningstar.com / Vanguard.

Answer 4

No, now is a great time to invest. Everything is cheap. Buy now while you can! Just don't get scared off and start selling when you lose a little bit. You are young and can take a little hit.

Answer 5

If you have money to spare and a sufficient income that you will not need to draw on your savings and you have the temperment to deal with losses (almost certain to be some losses) then it would still be a difficult decision.

People with money to spare can do well by investing when the market is "down" and have the resources and patience to wait out the market and have a lot of luck but?? still difficult.

At your age you can afford to wait...but can you afford to live well while you are waiting????

I am 74 and have recently invested in some quality stocks that are near all time lows.  But I can afford to lose and the real losers will be my heirs (they will never know so)

Good luck....better to have a plan than to drift aimlessly.....

Answer 6

Would you buy stuff when there was a sale or wait?

Stock prices are at all time lows; there are bargains out there.

Mutual funds are diversified & managed by experts.

That's much safer then trying to pick stocks yourself.

Answer 7

Start now, Boy-o. A little bit, consistiently, without selling, will amass a fortune when you retire. Just don't be tempted to pull it out and spend it. Ever. It's hard...trust me.

I wish I still had my original stocks and mutual funds from when I was in my 20's...I would be on easy street.