Could I get some feedback on Mut. Funds??

JJones1090

Hey everyone,

First time posting here. I am 22 years old. Recently graduated and just landed my first job. Been working for about 2 months, and I have a decent handle on my budget now. I want to get a quick jump on investing, because the earlier I set these habits, the easier it will be imo.

I have about $120 to invest on a monthly basis.

I met with a financial advisor who was recommended by a trusted source. He is charging me no fees to set stuff up or meet with me. He says he gets paid via commissions for getting people on with the mutual funds he handles.

Here's my question: Can anyone tell me if these investment strategies look alright for a beginner with a low monthly investment?

He recommended establishing a Roth IRA and a mutual fund that will act as an emergency fund initially.

The two funds come from Ivy Funds. The first is the Ivy Fund Asset Strategy C Fund - This will be used for the emergency fund. The second is the Ivy Fund Science and Technology A Fund - This will be used for the Roth IRA.

I will be investing $60 each month in one and $60 in the other. Initial setup fees are $50 each. As I establish a fine emergency fund, he said we can change the proportion of money being invested in each.

What are your thoughts? On the initial investing strategy and the individual funds?


Thanks so much,


Jon

atush

Sorry honey, you are talking $, IRas, Roth, commissions. Which means you are working in the USA and this is mainly a UK board re pensions. So the laws and rules are different.

I am a fan of mutual funds, but look to performance, sector, and fees.

Your friend of a friend could be more expensive. See if you can invest in the same funds direct for less (or another company) if you are happy with the funds suggested and their performance.

And find US pension investing forum that can take you around the tax and fund issues, have a look at Motley Fool?

JJones1090

Ah that's what I get for not snooping around the forum too much before posting!

Thanks for your time anyway. I appreciate the recommendation.