Living Off Your Mutual Funds
Article Abstract:
Many people like mutual funds for the ease with which money can be invested, but for those nearing retirement, or needing money for some other reason, mutual funds can also provide an easy way to withdraw money. Withdrawal programs can utilize the income or interest earned from a mutual fund without touching the principal, or a percentage can be withdrawn each year which is well below the return on the account. Another way to withdraw money and have more equal payments is to take distribution of capital gains and dividends instead of reinvesting them. There is another tactic which should be used only by those who are experienced and high bracket investors: It involves investing in funds which pay out capital gains. (these are usually the funds which take high risks and lose when the market heads down) and then switching funds frequently to realize a high return. Whatever method is chosen, investing in mutual funds can turn out to be a good strategy when some money needs to be withdrawn.
Publication Name: Money
Subject: Business
ISSN: 0149-4953
Year: 1984
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And Now, the Multi-Track Approach
Article Abstract:
The stock market of the past year has been especially volatile, and investors often do not know where, exactly, they should be putting their money. One strategy is to split the money available for investment between several mutual funds. By choosing mutuals which each have a different investment strategy, the chances are good that no matter what happens to the market, the investment will be safe. Before choosing any investments, however, a careful analysis is needed of future financial needs - both short and long term. Different funds do better in different stages of the market, and a mix among these types can be highly desirable. But even splitting an investment among many mutual funds does not mean that the money should be invested and forgotten - the performance records for mutuals, as well as personal needs change, and so both should be reviewed periodically to make sure they are meeting expectations.
Publication Name: Money
Subject: Business
ISSN: 0149-4953
Year: 1984
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Shelters That Won't Leak
Article Abstract:
The Internal Revenue Service (IRS) is waging an all out attack on many tax shelters, and by investing your money in one of the deals the IRS is disallowing, substantial tax benefits could be lost. Limited partnerships can be a good investment, but there are a great many fraudulent deals around, and investors should examine potential investments carefully. There are public and private partnerships available in four basic categories - real estate, oil and gas, equipment leasing, and research and development - but no matter what the investment promoters maintain, anything that looks too good probably is.
Publication Name: Money
Subject: Business
ISSN: 0149-4953
Year: 1984
User Contributions:
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