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The Miami Herald Money Matters Column
The Miami Herald
Harriet Johnson Brackey
January 22, 2003
Jan. 22--SET YOUR GOALS FIRST WHEN INVESTING YOUR MONEY: QUESTION: I am 31 and in the insurance business. I would like to know your opinion on a good mutual fund to invest in. From what I know, it's better to invest in a mutual fund rather than a savings account. What do you recommend, and which company is a good choice?
--DAVID, N. Miami Beach
ANSWER: You're focused on the car and not the highway.
The way I see it, you have to decide where you're going and how to get there before you start. Are you investing for retirement? To buy a house in a few years?
The first thing to pin down is how much time do you have.
Next, there's your understanding of the market. You need to spread your money around, into stocks, bonds and cash. You need to look at large companies and small ones. And you need to learn about the styles of investing for growth or value.
What I'd like you to do is go to a couple of good, investor education-oriented mutual fund websites, such as TRowePrice.com or Vanguard.com. I'd also start reading Morningstar.com. You can begin to learn there about the choices available.
Then, when you've done a little bit of reading, ask me again. It's not hard to put together a basic portfolio of mutual funds.
Got a personal finance question? Go to Herald.com, click on Q&A Forums and go to Money Moments, or send an e-mail to hbrackey@herald.com.
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