Are Mutual Funds Really Worth it? or not?
From the time you were a little kid you parents and older siblings along with your aunt and uncles and everyone else would tell you to save your money and this was some very good advice that holds true to this day. I mean if you have no money saved then this can make things extremely difficult at times, this is why it is always good to save. Even when you probably had your first lemonade stand and you probably made some where close to $100 if so much, the first thing that you probably wanted to do was run off to the candy store or to the toy store and go on a shopping spree and get all the things you wanted. Fortunately for the few that saved they money and probably put it into a mutual fun after a few years the money probably doubled or even triple, that’s what I would call a good investment.
Now a days when you think about mutual funds you think about interest and making money but is it really the same? Whith this economy most mutual fund give you less than 3 percent interest per annum if you are lucky and with the rate of inflation which is normally more than that technically you are actually losing money when you look at it like that. Now we all need to save money in life so the mutual funds is still a good way to go as it helps you combat inflation and hopefully when the economy picks up then the rates of the mutual funds will also pick itself back up as well. So all in all, mutual fund are still a very good idea and one of the best ways to go but in this current economy its just not the same as before.
Published in: Personal Finance