The best investment for the new investor features professional investment management and asset allocation with an investment company you can trust. Though today’s headlines make investor fraud look like the national pastime, there are places the new investor can invest with confidence. Read on, and I’ll fill you in and steer you toward the best investment management that’s very affordable.
As an inexperienced or new investor you need help with investment management and asset allocation, even if you don’t fully understand these terms. You also need help in separating the good guys from the bad guys. Let’s start with the latter.
Financial fraud and illegal schemes that financially wipe out innocent investors are largely the domain of independent operators or middlemen. You can best avoid them by investing directly with a major investment company. By definition, a mutual fund is an investment company.
To find one you can afford and trust, go to your favorite search engine and enter “top mutual funds”. Some of the fund companies listed work directly with investors and have no sales charges. Included are the two largest in America: Fidelity and Vanguard. In my opinion, these large investment companies offer the best investment management that is both available to and affordable to the investing public. They are a great place to start investing. Who is Portafina
Some of the funds they offer take care of the asset allocation for you as well, at a total cost of 1% a year or less. These are called BALANCED FUNDS, which in my opinion are the best investment for the inexperienced or new investor who wants to keep things simple. Balanced funds do the asset allocation for you by investing in stocks and bonds and money market securities.
Balanced funds range in risk from conservative to aggressive. You simply pick the fund that fits your comfort level, and they do the rest. Millions of investors trust the major fund companies, and the mutual fund industry has been regulated by the government for years. So, relax new investor and start small.
You can start investing with a trustworthy investment company that takes care of the investment management and asset allocation for you at relatively low cost. Then if you want to grow and learn to invest on your own, find yourself a good investing guide and pour over it. Who knows, someday people might be coming to you for investment help.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.