2007-03-10 15:23:09 · 4 answers · asked by *Fernando* 2 in Business & Finance ➔ Personal Finance
It is realistic possibility that you can earn 10% in your investments, especially when it's in a tax-deferred account. There are many mutual funds that has earn 10% or more in the past 10 years, but there are many that hasn't. The highest I ever seen was 13.88%. I have that mutual fund in my portfolio. Is any of the rates guaranteed? Absolutely not. Since they are investments, you may lose value. You don't lose any money or make any money until you sell your shares. If the market declines and you are still years away from retirement, then you shouldn't worry at all. I would continue to invest no matter how the market performs.
I think the best way to earn a return on your investments is to invest using dollar cost averaging. This is where you invest the same amount of money on the same day of the month (day 1-28) no matter what the prices are. By doing this, you lower the cost per share.
Some people suggest you invest in stocks. I say, if you are an average investor like myself who has no time to manage the stocks or research the company or decide when to buy or sell, then don't buy stocks. I sat down with many clients who invested in stocks or have stocks in their 401k, none of them had a single clue what they are doing. They all bought stocks because it looked "good" at the time. When I sat down with them, some lost money in stocks and some got a low rate of return.
Anyway, if you are investing for the long term and want your investments grow tax-deferred, open a Roth IRA (if you qualify) and pick mutual funds that meets your objective. And consistently invest your money into there.
Good luck with investing!
2007-03-10 17:30:00 · answer #1 · answered by Anonymous · 4⤊ 2⤋
5% interest rate on CDs & savings is the safest way to invest and both are FDIC insured.
If you're looking for something riskier, you can invest in stocks, etfs, mutual funds. They have a chance of returning 12% - 38% of your investments but there is a chance that you can lose it all as well.
2007-03-10 15:50:21 · answer #2 · answered by Geeeyaaa 4 · 0⤊ 0⤋
The sky's the limit and the amount of money you can lose is whatever you have in it.
El
2007-03-10 15:26:54 · answer #3 · answered by El_Nimo 3 · 0⤊ 0⤋
Billions.
2007-03-10 18:59:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋