Help Finding Mutual Fund

[Synacle1]

I've been looking all over for a mutual fund that will allow you to have a roth with no more than $250 minimum startup investment. I know its small change in teh grand scheme of things but its all I can afford to start with. I've managed to set my budget to allot for $50 per month thereafter investment until I either get a raise or pay off some of my debt. The reason I prefer not to simply place the money in savings is because I dont want it to be liquid (I'll find a way to spend it) and I would prefer a mutual fund over cd's due to interest rate's.

Any direction would be appreciated.

Rob

[VJW]

Re: Help Finding Mutual Fund

Well, I would suggest utilizing one of those mutual fund search tools that allow you to drop in specific filters like the criteria you mentioned.

BTW, in a more general area in regards to mutual funds, I recently heard a representative of Morningstar state that according to their extensive research, THE SINGLE BEST PREDICTOR OF FUTURE PERFORMANCE OF A MUTUAL FUND was the cost of operations to the investor. The lower cost funds consistently out-performed higher cost funds. Pretty interesting.

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[sweeps]

Re: Help Finding Mutual Fund

I've been looking all over for a mutual fund that will allow you to have a roth with no more than $250 minimum startup investment.

This page may be of help.

http://aol.smartmoney.com/fundscreen/index.cfm?story=20040402

Also Kiplinger recommends these funds:

Selected American Shares (SLASX) invests in large undervalued companies and consistently outperforms the S&P 500 index. Requires $250 to open up an IRA. Returned 9.3% over the past year, an annualized 7.9% over the past three years, and 14.5% over the past ten.

Homestead Value (HOVLX) invests in beaten-up shares of large and medium-sized companies. Requires $200 for IRAs. Returned 13.5% over the past year, an annualized 8% over the past three years, and 11.4% over the past 10.

Here is the link.

[terry1156]

Re: Help Finding Mutual Fund

I've managed to set my budget to allot for $50 per month thereafter investment until I either get a raise or pay off some of my debt. The reason I prefer not to simply place the money in savings is because I dont want it to be liquid (I'll find a way to spend it) and I would prefer a mutual fund over cd's due to interest rate's.

I know this isn't what you asked for, but your best move is probably to pay down your debt with the extra $50. You're guaranteed the rate of return of whatever the debt is (I'm assuming it credit card and fairly high) and seems to be a much smarter move at this point, but I don't know the specifics of your situation. Is there a reason you have decided not to put it toward debt?

[Synacle1]

Re: Help Finding Mutual Fund

Nope, No reason in particular. I'm using Dave Ramseys Debt Snowball style
of paying off my debts and will have them all gone by 3/08. I guess putting the $50 per month would get me out sooner but there is no interest being charged on any of my remaining debt. Thats why I figured since I'm not in a real rush, why not let the $50 per month make me some money (interest), and begin the retirement fund now. After looking over multiple articles and a few calculators I've been lead to believe that its better to start now and let the interest compound then wait another 2.5 years.

[terry1156]

Re: Help Finding Mutual Fund

Nope, No reason in particular. I'm using Dave Ramseys Debt Snowball style
of paying off my debts and will have them all gone by 3/08. I guess putting the $50 per month would get me out sooner but there is no interest being charged on any of my remaining debt. Thats why I figured since I'm not in a real rush, why not let the $50 per month make me some money (interest), and begin the retirement fund now. After looking over multiple articles and a few calculators I've been lead to believe that its better to start now and let the interest compound then wait another 2.5 years.

If all your debt is 0% (again, I'm assuming credit cards - if friends and family, please disregard) then you shouldn't be using the Dave Ramsey method. You would get ahead more by making the minimum payment on the debt each month and take the difference of what would have been in the snowball payment and place it into an Emigrant Direct account. This will allow you to earn 4% on the money and have it liquid enough so you can pay off the entire amount if needed if the 0% changes for some reason. Then you can also start placing $50 a month into a Roth IRA