Research Mutual Funds Before You Invest
Is that statement true?
Also, it seems like the fee % for an index fund (e.g. S&P 500 fund) would roughly equal to the funds alpha. Is that true?
The Vanguard S&P 500 fund is the largest and oldest such fund. It has averaged 4.60% over the last 10 years. The S&P 500 itself has averaged 4.68% (with dividends added). It would seem the fees are much lower than the alpha.
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Our local financial newswriter has been pushing index funds and no-load mutuals for a very long time, but we have been vested in loaded mutuals for over twenty years. Can we shift our funds into index funds or no-load funds without a major penalty or would there be subtantial costs for this kind of restructuring?
I thinking 20 twenty years would eliminate withdrawal penalties. Any recent purchase may have a back out fee… If you have been adding all the capital gains and dividends (reinvested) you have been paying taxes on all those years to the original amount you paid for the funds, you'll know your taxable gain. You subtract that number from the current value and that is the amount that is taxable. If it's a lot, maybe you spread the sales out over a couple of years to keep it under a tax bracket level? Then more it into the new index fund.
Before you do all of this, I'd see how the performances compare and see if there is a difference in 'after' fees return. I'd check up years and down years… Maybe you don't even need to change.
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Are there any funds that focus on the video game industry – game makers, console makers, etc. ?
Seems like a very narrowly focused area. You might have to do some research to find a fund that specializes in this area. One of Fidelity's Select funds might be what you are looking for: Leisure FDLSX, Software & Computer Services FSCSX, or Technology FSTPX.
Go to Morningstar & see if these funds have the companies you are looking for. Otherwise, just buy the stocks themselves.
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A home based business does require some money to cover necessary expenses whether it be for start up, maintenance, or expansion. While a home based business can be relatively inexpensive to own and operate, having the necessary funds is very important. Fortunately, there are plenty of options out there to help.
Have You Considered an SBA Loan?
The U.S. Small Business Administration is designed to help people start and operate their own small business. Keep in mind that the SBA will guarantee a loan made by private lenders to help you get the loan. They don\’t give away money or make the loan themselves. They also have numerous informational resources to help you operate your home based business successfully.
Just like most other loan situations, the SBA has criteria that must be met in order to obtain the loan. Particularly, they examine the ability to repay the loan from business profits. They will also expect you to personally guarantee the loan and they will examine what assets you may have. Other considerations are your character, management capability, collateral, and equity.
The SBA expects you to use your own assets first. They also expect your small business to be For Profit meaning that you intend to operate your home based business to generate a profit. Your business must also be conducted in the United States and there must be some owner equity meaning that the owner has a monetary stake in the business.
There are also rules about how you can use the money from an SBA loan. Items such as equipment, inventory, and working capital qualify. You cannot use the money to pay existing debts or make payments to business owners. Check the SBA website or your local office for further details at www.sba.gov
Have You Considered Private Grants?
While there are not any grants at this time offered by the U.S. Government for Small or Home Based Business endeavors, there may be sometime in the future. Check your local library for books authored by Matthew Lesko or visit http://freegovmoney.cjb.net/ He has made himself an authority on government based money programs. Also, some corporations may make grants available for small businesses. For more information, visit www.fdncenter.org/funders/grantmaker/index.html
Have You Considered a Conventional or Signature Loan?
If you think about how relatively inexpensive starting and operating a Home Based Business really is compared to a conventional business, you may opt to just borrow the money from a local or national lender. Now a days the competition to make loans is much greater than before which may mean good terms for the borrower. It is definitely worth looking into. You may want to inquire from the following:
American General Finance 800-435-6285 www.agfinance.com
Washington Mutual 800-933-3590 www.wamu.com
Citi Financial 800-995-2274 www.citifinancial.com
Beneficial or Household 800-340-7866 www.householdfinance.com
Lending Tree 800-555-8733 www.lendingtree.com
Have You Considered Other Alternatives?
1) Borrow From Someone 2) Bring in a Business Partner2) Use Your Credit Cards 3) Cut Your Budget and Save The Money You Need4) Take a Second Job
Regardless of how you obtain the funds that you need for your Home Based Business rest assured, Where there is a will, there is a way. Owning and operating a Home Based Business can be very rewarding. For many, it is a means to a much higher income and a lot more freedoms. It is well worth the hunt for funds.
I have it in a low cost S&P 500 Growth Index Mutual Fund. I hope to be retiring in 5 to 8 years. I have other retirement accounts with my current employer.
I would go with a Stable fund if you can get access to it. We are going thru the largest deflationary period since the 1930s. Preserving capital should be the biggest concern.. I can assure you that allot of people will loose allot more money in the next 18 months.. Certainly more than they have already. That is the nature of deflation…
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eng subs courtesy of Eclipse