Good mutual funds (American Funds)
When looking to invest in mutual funds, there are a few things you should keep in mind. You should look for funds that have been around for a minimum of 10 years. Funds that have a growth rate of at least 10% over the life of the fund. Also these funds should have gains at least 70% of the time since the beginning of the fund.
Invest money for retirement
If you follow the above rules, you should be in pretty good shape in your investments. You should be aware that there will be years when you will lose ground, but overall you will be gaining ground at 10% or better. There are many funds that meet this criteria. I am going to briefly mention 4 funds in this article. I will mention the name of the fund with the stock ticker symbol in parenthesis. I went to www.americanfunds.com to research these funds.
AMCAP Fund (AMCPX) began in 1967. As of the end of 2008 it had growth in 31 years and losses in 10 years. That means 75% of the time it has made money. The average annual growth since the beginning of the fund is 10.50%.
Washington Mutual Investors Fund (AWSHX) began in 1952. As of the end of 2008 it had growth in 45 years and losses in 11 years. That means 80% of the time it has made money. The average annual growth rate since the beginning of the fund is 11.50%.
American Mutual Fund (AMRMX) began in 1950. As of the end of 2008 it had growth in 48 years and losses in 10 years. That means 82% of the time it has made money. The average annual growth rate since the beginning of the fund is 11.30%.
The Investment Company of America (AIVSX) began in 1934. That's right, 1934! That means this particular fund began during The Depression, has survived World War II, the Korean Conflict, Vietnam, the gas crisis in the 1970's, the resignation of President Nixon, the recession of the late 1970's, the Savings and Loan scandal, the dot com rise and fall of the 1990's, the attack on the World Trade Center and many more smaller crisis' that has happened in the last 75 years. As of the end of 2008 it had growth in 61 years and losses in 13 years. That means 82% of the time it has made money. The average annual growth rate since the beginning of the fund is 11.90%.
These are just 4 good funds to invest it. All of these funds are in the American Fund portfolio. There are many more funds with other investment companies that are good.
Some people may be enticed to invest in annuity insurance policies. Even if these funds are included, in my personal opinion, I would not invest in annuity insurance. You will have to pay extra fees so the growth rate of these funds will be diminished.
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