I'm only 21 and I'm going to open an ROTH IRA. I was recommended to
invest into The Hartford Capital Appreciation Fund. I don't know much
about mutual funds or stocks. Any advice for a young guy looking for
long term gains? Any recommendations? Where can I look? What should I
do?
"Anthony" <> wrote in message
news:
> I'm only 21 and I'm going to open an ROTH IRA. I was recommended to
> invest into The Hartford Capital Appreciation Fund. I don't know much
> about mutual funds or stocks. Any advice for a young guy looking for
> long term gains? Any recommendations? Where can I look? What should I
> do?
Hartford Capital Appreciation Fund is a load fund and it is offered in a
variety of share classes. Many advisors would like to see you in B or C
shares. They get more money out of it.
The two main reasons people buy load funds are:
1. Someone sold it to them, your advisor.
2. Low minimum to start.
As it happens this fund, Hartford Capital Appreciation Fund, is a very good
large cap blend fund. I has had great performance but it's still a load fund
and I would suggest avoiding these.
If you go to Vanguard.com, TRowePrice.com, or Fidelity.com you will find
tools there that will help you decide which funds are best for you.
The funds at these 3 companies are no-load funds. The difference between
load funds and no-load funds are best explained this way. If you invest
$1,000 into Hartford Capital Appreciation Fund $55 dollars goes to the
salesperson and $945.00 goes to work for you. If you buy a fund from one of
the other 3 companies then $1,000 goes to work for you.
If your advisor has talked you into a large cap blend fund you can buy
Neuberger Berman Partners Tr (NBPTX) with no load and it's every bit as good
as the load fund.
Thanks for the advice. I'll check out those sites. I reposted the
message under my email address because I was logged under my friends
email account when I did the original post.
Ed wrote:
>
> If your advisor has talked you into a large cap blend fund you can buy
> Neuberger Berman Partners Tr (NBPTX) with no load and it's every bit as
> good as the load fund.
At Neuberger Berman (N&B), the Trust share class is primarily for
purchase through brokerages without transacion fee (NTF). These carry a
12b-1 fee (at least it is small, at 0.10%) that is absent from the
Investor share class. For Partners Fund, the Investor share class is
NPRTX.
You can buy NPRTX directly from N&B, with no transaction fee from
Schwab, or with a transaction fee from many other brokers.
It also comes in Advisor share class (NBPBX), with a higher 12b-1 fee
(0.25%), that I believe is designed for sale by advisors. If you are
making your own decisions, go with the cheapest share class.
--
Mark Freeland
What's the difference between NPRTX, NBPTX, and NBPBX. Are they just
different share classes?
<> wrote in message
news:
> What's the difference between NPRTX, NBPTX, and NBPBX. Are they just
> different share classes?
If my son were just starting out I'd tell him to go with Vanguard STAR until
his account got larger.
STAR offers you low expenses, great diversification, and automatic
rebalancing.
I'm glad you picked up on that, NPRTX, is the fund I meant to suggest.
"Mark Freeland" <> wrote in message
news:
> Ed wrote:
>>
>
>> If your advisor has talked you into a large cap blend fund you can buy
>> Neuberger Berman Partners Tr (NBPTX) with no load and it's every bit as
>> good as the load fund.
>
> At Neuberger Berman (N&B), the Trust share class is primarily for
> purchase through brokerages without transacion fee (NTF). These carry a
> 12b-1 fee (at least it is small, at 0.10%) that is absent from the
> Investor share class. For Partners Fund, the Investor share class is
> NPRTX.
>
> You can buy NPRTX directly from N&B, with no transaction fee from
> Schwab, or with a transaction fee from many other brokers.
>
> It also comes in Advisor share class (NBPBX), with a higher 12b-1 fee
> (0.25%), that I believe is designed for sale by advisors. If you are
> making your own decisions, go with the cheapest share class.
>
> --
> Mark Freeland
>
On 20 Feb 2006 13:08:25 -0800, "Anthony" <> wrote:
>I'm only 21 and I'm going to open an ROTH IRA. I was recommended to
>invest into The Hartford Capital Appreciation Fund. I don't know much
>about mutual funds or stocks. Any advice for a young guy looking for
>long term gains? Any recommendations? Where can I look? What should I
>do?
>
Just put your money into the Vanguard Target Retirement 2045 fund.
One fund, set it, forget it. What could be easier?
Along the same lines, you do Fidelity Freedom 2040 fund:
Of course you could also do both if you want.
These finds start out heavily invested in stocks, then they gradually
become more conservative by switching over to bonds as your retirement
age approaches.
Most newbie investors spend far too much time thinking about how
to pick the "best" funds. That isn't what matters at all. A "good"
fund is all you need. By far the most important thing is to keep making
your contributions on a regular basis. Don't ever stop, because once
you stop it becomes very hard to start up again.
wrote:
>
> What's the difference between NPRTX, NBPTX, and NBPBX. Are they just
> different share classes?
Yes.
--
Mark Freeland