I am 17, have invested in mutual funds and will add more. So, there is this 1 mutual fund that if I reach the amount of around 2000 USD, there is a free LIFE INSURANCE of 4000 USD. What do you think? I diversified my portfolio in mutual funds. 1000 USD in one account and 1000 USD in another. Will add around 2000 USD this December and maybe another 1000 or more again next year either February or March. I will not touch any of these until I have idea of really good business. Hoping to reach Millions in the future... So, is the offer good or is it bad? I want to really live a great happy rich life when I reach around 40+... My family has businessess etc... but I want to have my own business seperate from my family... Any other business ideas? I still have more time to grow anyway......
My family owns a funeral home, biggest in my province, 1900+ square meters, a drive-in hotel of 19 rooms & more...
Hopefully I can be like trump by 50.......... I want to be a billionaire..... hopefully
2007-12-13 15:46:05 · 4 answers · asked by Gillbates 2 in Business & Finance ➔ Investing
Is the LIFE INSURANCE OFFER OF THE MUTUAL FUND COMPANY GOOD?
2007-12-13 15:46:34 · update #1
Will add a few more thousands next year to my portfolio....
2007-12-13 15:47:00 · update #2
OH, AND IF YOU HAVE BUSINESS IDEAS, I AM VERY MUCH WILLING TO LISTEN. ;-)
2007-12-13 15:48:08 · update #3
Generally life insurance is not a good investment vehicle.
If you need to insure your life (and at 17, you probably don't), then buy "term life insurance". Don't buy a policy that is also an "investment"---these are generally designed to make a lot of money for the insurance company.
You're making a good start. Keep an eye on the expense ratios of your mutual funds. Look into "index funds" with low expenses.
2007-12-13 15:51:35 · answer #1 · answered by cosmo 7 · 1⤊ 0⤋
Well, you are only 17. You are investing 2000USD so far. Where did you earn the 2000 from? Are you working? How much do you manage to save every month?
The free life insurance offered by the mutual fund is not really for someone like you. You have no dependants. The company will probably deduct some part of your investments towards the premium without your knowledge.
You want a happy, rich life at 40 and a billionaire by 50. You are only 17 now, you have 33 years left to become a billionaire. Work hard and save, invest in the right stocks and mutual funds and you will definitely achieve your goal.
2007-12-14 00:17:15 · answer #2 · answered by s31y75 1 · 1⤊ 0⤋
Life Insurance is NEVER a good investment vehicle. If you MUST have life insurance, then buy a term policy.
Diversify your mutual funds amongst about 4 different different investing goals, ... Growth, Aggressive Growth, International, large cap etc.
Learn about the advantages of Dollar Cost averaging.
The above being said, as you describe the Insurance, Interest and mutual funds being interelated.. something doesn't sound kosher, certainly not traditional. Is your current investment through someone in a Multi-Level- marketing program or an Insurance agent? If so, that is probably not the place to get the best returns.
Starting your investments this early indicates a strong desire to succeed. Learn a bit more and I am sure you will be successful in reaching your goals
2007-12-14 12:07:57 · answer #3 · answered by witz1960 5 · 1⤊ 0⤋
there is no such thing as a free lunch.
not ever in the financial markets. NEVER.
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you may be sure that the fees and costs associated with this product are higher than the industry average and that the salesman gets a larger than normal commission.
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Vanguard Funds lead the industry for low costs. That's because their fund management company is owned by their funds, not by some outside people who are trying to become wealthy by managing your money.
GL
2007-12-13 23:57:05 · answer #4 · answered by Spock (rhp) 7 · 0⤊ 1⤋