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Start a new year. Offer
yourself a raise!
Soraya
Nasrallah Gazelle for TheInvestor.tv / ITI Press
This year gift yourself the best gift you can have – a raise! How do you
start? Investing
part of your income in a no-load fund that offers you the diversity needed
for both good times and bad times in the market. The no-load fund I am
interested in showing you is the Fidelity
Four In One Index Fund, ticker
symbol (FFNOX).
This fund is offered by Fidelity -
www.Fidelity.com – and it is a no-load fund,
meaning it won’t charge you a fee to purchase its shares thus, all of your
investment dollars are put to work. I recommend you to open with them a
regular or retirement account (like an IRA, Roth IRA, One Person 401k
etc.) so that you can get started.
Just contact Fidelity so that you can have your own brokerage
account where you may invest your money in funds, individual stocks, bonds
etc. This account could end up being quite beneficial for your financial
well being.
With a retirement account you will be able to defer taxes until you
withdraw the money for retirement. With a regular account (retail account)
you will pay taxes every year on the interest and dividends that the fund
receives through its investments.
The following information offers you the basics of this no-load fund which
I just purchased for my Roth IRA in November of 2006 @ around $28 per
share.
Fidelity
Four-In-One Index Fund –
(FFNOX)
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FFNOX invests your money into 4 funds offered by Fidelity.
It is like purchasing 4 individual funds at the same time.
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These 4 funds are the
following: The first 3 invest in individual stocks and the fourth fund
invests in United States Government bonds; which offer you the
opportunity to receive monthly interest income.
Important Note: I highly recommend
that you re-invest all your interest and dividend income that may be
produced for you by this fund so that you may ultimately obtain a
greater return on your investment due to the compounding effect.
1.
55% is in the Spartan 500 Index Fund
2.
15% is in the Spartan International Index Fund
3.
15% is in the Spartan Extended Market Index Fund
4.
15% is in the U.S Bond Index Fund
● The FFNOX
has been given 4 stars by Morningstar - the independent Chicago based
company that analyzes and rates funds. 5 stars is their highest rating.
● FFNOX has a
year to date (YTD) historical average of 8.12%.
I
must also mention that during bear market times (when the market is
heading down) this fund’s return had been negative. We must also remember
that we don’t usually get to experience severe down markets like the one
we experienced in 2000, 2001 and part of 2002.
The important concept here is that when you invest your money in a fund it
is imperative that you keep in mind that you are investing for your
retirement and that you are not to buy and sell a fund like you do with an
individual stock. In order for a fund to work on your behalf you must let
the compounding effects work on your behalf and that means that you should
hold a fund for 6 to 10 years or more – it depends on how the overall
market has done.
We
are talking about accumulating money, not buying and selling stocks every
2 to 3 months! Also, keep in mind that a retail or retirement account is
not the only retirement vehicle that you should maintain in your
personalized investment pie! Below I offer you a glimpse of what I believe
is necessary for any individual that wishes to live a great life without
worrying about their future well being.
“If you want to
build a ship, don’t drum up the men to gather wood, divide the work and
give orders. Instead, teach them to yearn for the vast and endless sea”.
-
Antoine de Saint-Exupery
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