web analytics
December 21, 2014 / 29 Kislev, 5775
 
At a Glance
Blogs
Sponsored Post
8000 meals Celebrate Eight Days of Chanukah – With 8,000 Free Meals Daily to Israel’s Poor

Join Meir Panim’s campaign to “light up” Chanukah for families in need.



Should You Buy Apple, Facebook or a Mutual Fund?

If you are thinking of purchasing individual stocks, ask yourself whether you have sufficient knowledge to choose these investments yourself.
Goldstein 485x300

Putting your money into individual stocks may be the fastest way to get rich – but it’s also the fastest way to lose the shirt off your back if you guess wrong. Buying a single stock exposes you to high levels of risk, even if the stock is strong. And even if you’re an expert on the company and its industry, there’s no certainty that the market won’t take an unexpected turn at any time and your stock won’t perform as well as you’d hoped. For this reason, it’s important to diversify your portfolio. If you have a diversified portfolio, any possible losses will hopefully be offset by a gain in a different stock.

Another disadvantage of buying individual stocks is that trading them can be very expensive. If you’re a high-volume trader, the multiple transaction costs involved in beating the market and selling your less profitable stocks take their toll.

Additionally, if you are thinking of purchasing individual stocks, ask yourself whether you have sufficient knowledge to choose these investments yourself. Do you have time every day to follow the market and stay in tune with the latest economic forecasts? The economic world is in constant flux and you need to be ready to adjust your portfolio to keep up. Do you really have the time and energy to devote to this, when you are also busy with your work and family?

So what’s the most effective way to invest?

For many people, the answer is mutual funds.

A mutual fund is a collection of securities, most often stocks and/or bonds. Every person who invests in a mutual fund is essentially a shareholder of this basket or collection of investments. The losses and gains of the fund reflect the movements of the individual assets inside the fund. A mutual fund solves the problem of diversification and the fund managers are the ones who have the responsibility of researching and making investment decisions. Though they may not get it right all the time, at least they have the time to investigate their ideas.

It’s important to note that with mutual funds, there’s no such thing as “one size fits all.” Different types and styles of mutual funds are appropriate for different kinds of investors. Indeed, a mutual fund’s value may be the time when the whole is really greater than the sum of its parts.

Call your financial advisor today to find out which fund may be best suited to meet your goals.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning and investment services firm located in Jerusalem. He specializes in working with clients who live outside of the United States and want to maintain a U.S. brokerage account. Doug’s newest book, co-authored with Susan Polgar, about how using chess strategies to improve your finances, Rich As A King can be purchased at www.richasaking.com. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, FSI. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Contact at doug@profile-financial.com


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “Should You Buy Apple, Facebook or a Mutual Fund?”

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Christian Israeli Kay Wilson and Mohammed "Zionist" Zoabi.
Christian Terror Victim Protected ‘Mohammed the Zionist’ from Terrorists
Latest Blogs Stories
Young Ultra Orthodox kids sit in a classroom in a school in the neighborhood of Neve Yaakov in Jerusalem

The crisis in Jewish education is of existential importance. How should it be resolved?

George Orwell was an anti-radical, anti-totalitarian socialist who admired the United States.

BBC GUIDELINES ON TERRORISM: The word “terrorist” itself can be a barrier rather than an aid…

Doug Goldstein

Discussion with entrepreneur William Heinecke on how he became a young, successful businessman

Alan Gross (L)

Did Cuba apologize for their spies the way Israel apologized for Pollard?

Nothing binds Jews together more than Torah observance; Or so one would think.

Sukkah tinsel decorations enjoy a robust market but are invariably manufactured for “another”holiday

A number of Israeli papers regurgitated a biased AP article on settlement growth, but they should have read it more carefully before hitting publish.

Many of the battles of the Maccabees were right here in the Shiloh area.

Both Labor and Likud are expected to get more seats in the upcoming elections.

Get a straight answer from Edward de Bono to the question: What is lateral thinking?

Jewish communities worldwide commemorate Yehudit during Chanukah by eating dairy foods in her honor

Israel’s problem isn’t Indyk, Obama, UN, NGOs or even the media; Our problem is much closer to home.

None of the attacks on Jewish & property should come as a surprise in light of the Temple Mount.

No surprise! Israel is now being blamed for Ziad Abu Ein’s death.

How does the new U.S. tax amnesty affect American citizens living in Israel and abroad?

The party chiefs are acting drunk and childish – making stupid mistakes and inadvertently showing their true selves – just like on Purim.

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Discussion with entrepreneur William Heinecke on how he became a young, successful businessman

Doug Goldstein

Get a straight answer from Edward de Bono to the question: What is lateral thinking?

How does the new U.S. tax amnesty affect American citizens living in Israel and abroad?

Emerging adulthood and how young adults can achieve economic independence in today’s financial world

Doug talks with Steve Repak about the nature&meaning of wealth and how you can eliminate your debts.

How can you turn your physical books into E-books?

Find out how to set goals and take better care of your finances.

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/should-you-buy-apple-facebook-or-a-mutual-fund/2013/04/12/

Scan this QR code to visit this page online: