I hear all the time things like:
“2% interest is about the best you can get in a savings account.”
“There is no way to get more than 4% return on your Money”
The first statement is true..IF you put your money into a savings account at a bank. The second statement just isn’t true at all. You can get 10% or more on your money. You just need to do some research and know where to put it.
There are Mutual Funds that have gotten an average annual return of 10% or more for the past 10 years. Here’s how to find out which ones they are.
How to Find a Mutual Fund
I use Morningstar.com to search for these Mutual Funds. They do require you to sign up for a free account on the website before they give access to their research tools. They also have a paid option that gives you more tools but I personally don’t feel you need that. I use the free account. After you sign up for the account and log in you will see many tabs along the top, click on the Tools tab. You will see a screen something like this.
Now look under Screening Tolls and Basic Screener and click on mutual funds. This will bring up the search screen. Select the criteria you wish to search for. In my example below the only search criteria I searched for was average 10 year annual return of 12% and a minimum initial investment of $500 or less.
You can see that my search pulled up 69 Mutual Funds with a 10 year average annual return of 12% or greater and Minimum Initial Investment of $500 or less. To get more information about a particular Mutual Fund just click on that Fund.
How to Invest in a Mutual Fund
There are two ways to invest in a Mutual Fund. I will tell you about both ways and then give you my opinion on each.
The first way is to purchase the fund straight from the Mutual Fund Company. Many Mutual Fund Companies now allow you to open an account online. Many of them have online live chat with representatives who will help with things line opening the account, making your initial investment, and any other questions you might have. All of them have Customer Service numbers you can call for the same help. I would not suggest buying straight from the mutual fund company. They only funds they will sell you are their funds.
The second way, and the way I recommend, is to find a trusted Financial Planner in your area. Find one in your area so it’s easy for you meet with on a regular basis to discuss your plans and determine changes in investment directions. And I would suggest finding one who does not work for a financial institution that had mutual funds. As i mentioned above, you don’t want one that only sells one companies funds. Make sure you find one that will look at all the funds out there and find the right funds for you.
How do you find a trusted Financial Planner? The best way is to talk to people you know and trust and ask them. Talk to people at your Church, at work and in the community. Your friend will give you true recommendation and feedback.
I’m no financial planner and I don’t claim to be, that is why I use the services of a financial planner. I do however use this tool as research before I talk to my planner. So do your research and then go find a great planner.
If you have questions or a comment please let me know below.