web analytics
September 30, 2014 / 6 Tishri, 5775
At a Glance
Blogs
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



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, SIFMA, 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
Israeli soldiers and security personnel protect Jews in Silwan Valley.
Jews Enter Six More Buildings in Silwan Secretly Bought from Arabs
Latest Blogs Stories
Jewish archaeological finds

Yeah, I know what you’re thinking but no, I haven’t lost my mind and no, I am not kidding.

PA Chairman Mahmoud Abbas speaking in Ramallah, July 1, 2014.

Abbas again used the UN to attack Israel, distort history, and undermine prospects for peace.

Doug Goldstein

Discover the motivations and the emotions that may affect investing.

Yehudit Tayar

This piece partner- no it was not a spelling mistake- they desire piece after piece of our Land.

President Obama showed courageous leadership with his decision to attack “Islamic State” despite the unavoidable ensuing collateral damage.

The solution to the friction with Hareidim on El Al flights is so simple and obvious, it amazes me that it hasn’t been implemented yet.

Global resources flow to young and capable descendants of Arabs who left Palestine over 60 years ago

There was a problem: A different speech, in part, was delivered on September 27

Obama’s speech was the epitome of chutzpah and hypocrisy.

After Israeli-Arab and Zionist Mohammed Zoabi expressed his support for Israel, he was forced to go into hiding for his safety…

Here is your chance to show your appreciation to the IDF!

This video of IDF soldiers singing one of the most powerful prayers Jews say on the holiest day of the year is simply amazing!

When I think back to one year ago it actually feels like a lifetime ago; I was truly another person.

To continue meriting the Promised Land, Jews must consider & always improve upon their own behavior.

Though the Talmud doesn’t give instructions, Metzitza has always been done B’Peh – by oral suction.

ISIS and Hamas are cut from the same cloth. Obama should listen to Netanyahu.

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Discover the motivations and the emotions that may affect investing.

Doug Goldstein

Grandmaster Michael Adams talks about life as a professional chess player.

Why some countries are more economically successful than others? Tune in for the answer…

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

How do you reach the top of your profession, and are you always aware of your own talents?

How has the sudden growth in modern technology affected world economy and future employment levels?

Learn about Monte Carlo-not the place but simulator forbuilding a financial plan.

This week’s podcast discusses the need for transparency in international business dealings.

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: