Mutual funds newb here...

[kornstar369]

mutual fund = gamble with your $$

because just as fast as it can go up...it can come down...if your young , i am as well, just take the safe way out and invest in a stable fund. guaranted investment. slow but steady wins the race.

[Rehan]

It's been a while since this nice thread was updated. I was wondering, where would I locate a reputable financial advisor? Preferably a Fee-Only advisor (So commissions don't sway his/her decisions).

Would going to my bank be the ideal place to locate such a service?

All advisors at banks are commission based, I believe. The percentage of advisors that are fee-only is between 5% and 10%...so most that you'll fine won't fit the criteria. Keep in mind that you're probably looking at $150-$250/hr for their services. If you head over to http://www.financialwebring.com/forum and post your request there, I'm sure a few of them will respond. You may even get good free guidance from the more experienced DIY investors there without having to start off with before seeing an advisor.

[Hymac]

If you are young and have a long term investment horizon, you're actually in the best position to take on a higher level of risk.

[Rehan]

mutual fund = gamble with your $$

because just as fast as it can go up...it can come down...if your young , i am as well, just take the safe way out and invest in a stable fund. guaranted investment. slow but steady wins the race.

If you invest 100% in GICs, you definitely won't win "the race".

Diversity is the name of the game. And that's what mutual funds offer.

Read the "Asset Allocation" and "Portfolio Construction" sections (among others) at http://www.shakesprimer.com/

[crazyboie]

All advisors at banks are commission based, I believe. The percentage of advisors that are fee-only is between 5% and 10%...so most that you'll fine won't fit the criteria. Keep in mind that you're probably looking at $150-$250/hr for their services. If you head over to http://www.financialwebring.com/forum and post your request there, I'm sure a few of them will respond. You may even get good free guidance from the more experienced DIY investors there without having to start off with before seeing an advisor.

If you invest 100% in GICs, you definitely won't win "the race".

Diversity is the name of the game. And that's what mutual funds offer.

Read the "Asset Allocation" and "Portfolio Construction" sections (among others) at http://www.shakesprimer.com/

Rehan, much thanks for the links! kornstar, A mutual fund can be stable based on your Risk Level. It depends if you choose a fund based more with GICs, Money Markets (Read: Cash Assets), Bonds (Read: Debt Assets) or Stock (Read; Equity Assets)

Truth be told, they all have their advantages/disadvantages! I'm reading a book right now 'Risk is STILL A Four Letter Word' and it points out the pros/cons of each. Rehan is bang on with diversification and Hymac is correct about time being on our side.

The longer you're involved with something, the better your odds are receiving a profitable return.

With that being said: If you're young, Time Diversification X Asset Diversification = Great Opportunity to enhance your profits

I'll never look at savings accounts and/or bonds the same way again, inflation eats their rates away! Ugh!