Posts Tagged ‘Yield’

7 Best Mutual Funds for 2009

7 Best Mutual Funds for 2009

As our economic outlook continues to be poor and as the stock market is in turmoil, stock investing has become increasingly difficult. Maintaining a solid investment portfolio can be hard work. One alternative to the difficult work of stock selection is to invest in mutual funds. With thousands of mutual funds to choose from, how can you tell which ones are the best?

That’s why I have compiled a list of the 7 Best Mutual Funds for 2009. After researching the performance, stability, and income of hundreds of top-rated funds, I found the best mutual funds to invest in for 2009 and beyond.

Income-Dividends
One part of my selection process was to find mutual funds with cash flow, either through dividends or bond interest payments (in the form of dividends for mutual funds). This factor is becoming ever more important during a time when stocks continue to decline. Through dividends you can know that you will have an income of the yield percentage.

Future Trends
Another selection criteria was to find mutual funds that are going to perform well for years to come. As you will see, I have included a mutual fund that invests in stocks of alternative energy or “green” companies. The whole environmentally-friendly, green movement is just getting started and will be a boon to the economy for the next 10-20 years. One aspect that is somewhat more of a near-term strategy is the gold focused fund because of the predicted rise in the price of gold over the next year or two.

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Long-Term Performance
The last and most important selection criteria was the long-term performance of the mutual fund. Any one stock or mutual fund can perform well over one or two years by luck, but it takes true skill to manage a portfolio that has good returns over a ten year period. A major failure of many investors that buy mutual funds is that they chase the fund that is currently performing the best or just recently had its best year. If the mutual fund is having an unbelievably great year, then either stay away from it because it’s too late or sell it if you own it.

The 7 Best Mutual Funds for 2009:

1. American Century High-Yield Fund (AHYVX)

– With the current state of the economy, your best bet for making money is finding an investment with a stated income (i.e. dividends, bond interest payments). American Century’s High Yield Fund has a dividend yield of 9.38%, which is much larger than most high yielding mutual funds or stocks.

2. The New Alternatives Fund (NALFX)

– this is the perfect mutual fund for times when people and companies are looking for environmentally-friendly ways of doing things. This mutual fund invests in companies that focus on renewable energy sources, as well as companies that are concerned with energy conservation and environmental protection. Over the next decade green and alternative energy stocks will most likely sky-rocket with gaining popularity and necessity.

3. Franklin Utilities Fund (FKUTX)

– A utilities fund is also a great way to get a flow of decent income during a time of poor stock performance. This mutual fund has a dividend yield of 4% and a 10-year annualized return of 5.17%, which is very impressive. Utility companies are a solid investment for having a stream of dividend income.

4. ING Corporate Leaders Trust Fund (LEXCX)

– Although its 10-year annualized return has been hurt by the recent stock market downturn putting it at 3.67% (which is better than all but two main value strategy mutual funds), ING’s fund has performed 10% better than the S&P 500 over the past year. It also has a dividend yield of 2.46%.

5. Franklin Gold and Precious Metals (FKRCX)

– This mutual fund has been a top performer over the past decade with a 10-year annualized return of 14.42% and a current dividend yield of 8.34%. This mutual fund has performed amazingly, and it will continue to perform with gold becoming more of a flight-to-safety investment for investors.

6. Vanguard Energy Fund (VGENX)

– although the commodities boom of earlier this year has faded, oil prices will come back. It is only a matter of time. Vanguard’s Energy Fund has had a 10-year annualized return of 14.81%, which is better than most mutual funds of any kind. It is positioned to perform well over the next few years.

7. Municipal Bond Fund (of your choice)

– municipal bond rates have gone up in recent months and continue to be a great source of extra income. For example, some bonds in Florida are paying 6% a year in interest. Remember with municipal bonds that interest payments are tax-exempt; just make sure you pick a bond that is within your state (otherwise interest payments become taxable). How does a tax-free income of 5% or 6% on your investment sound for 2009- with the U.S. still in recession?

Related Vanguard Money Market Interest Rate Articles

Finding the Highest Yield Money Market Account

Finding the Highest Yield Money Market Account

If you are saving for a short-term financial goal and you want the flexibility of writing checks with a comparable interest rate to a savings account, it pays to look for the highest yield money market account you can find. Fortunately, banks now make it easier than ever to take advantage of competitive market rates while growing your money in a stable, low risk environment. Here’s how a high yield money market account may be able to benefit you.

The More You Deposit, The More You Earn

Getting the highest yield money market account doesn’t have to take hours of research or scouring the web. There are plenty of great comparison websites that display the most current money market rates, allowing you to easily compare and calculate your potential earnings right from your computer. Of course, the more you invest in your money market account, the more you stand to earn in interest. However, the highest yield money market account will enable you to reach your savings goals even faster.

Going Beyond the Numbers

It’s important to look beyond the numbers of your chosen money market account. Other features and benefits may be available to you depending on where you choose to bank. Beyond a solid rate, you’ll also want to look for a money market account with a low minimum balance (around 00). Keeping your money market account at or above this minimum balance can help you avoid account management and maintenance fees which, if left unchecked, could eat away at your savings.

It’s also important to ensure that the highest yield money market account you choose compounds interest daily and posts it to your account every month. This allows your savings to grow at an even faster rate than if they had simply been sitting in a lower rate savings account. You should also be able to attach your money market account to your other bank accounts to prevent overdraft fees. This simple savings plan gives you more for your money without losing your earn interest in adding fees and charges.

Security and Stability

Finally, ensure that the banking institution you choose is FDIC or NCUA insured. These government institutions back your investments with the strength and stability of the US government, and have never failed since their inception in the 1930s. This backing, together with the latest technology in online security, can help provide an added layer of protection to your funds, while helping you reach your short-term savings goals in a stable, low risk environment.

Overall, your money market account gives you the flexibility of writing checks along with an interest rate comparable to a savings account. The more you choose to deposit, the greater the highest yield money market account will be available to you. Take advantage of today’s competitive rates and grow your savings with confidence.

More Highest Money Market Interest Rates Articles

High Yield Money Market Account: Instead of an Introduction

High Yield Money Market Account: Instead of an Introduction

There are several options to invest your money. It is still a matter of anxiety for everyone. One finds it difficult to decide where one’s money will be safe and will produce good returns. If anyone gets a huge sum by disposing of one of his valuables, he should invest the amount somewhere. High yield interest returns are the innocent target no doubt. If he goes for a certificate of deposit, he is sure that there is very restricted access. If he considers investing in the stock market, it is not unnatural that he may scream apprehending great loss in profit. Banks and financial institutions are in plenty. He can open a savings account and this he can do just to earn a few cents as interest. It is better, for all practical purposes, to try one’s future with the high yield money market account.

If you have a high yield money market account, you will find three avenues to retrieve your money. You are allowed to secure checking accounts. You can get an ATM card, which is handy which you can use to withdraw your money as and when you need it. There are also provisions of online transfers. A high yield money market account is famous for the higher rates of interest it generates, and this is higher than what is available in any other savings accounts. The interest rate is usually one percent higher and sometimes it is two percent higher than what the banks or financial institutions pay. This kind of account is also famous for the annual percentage yield which means that interest earned from the investment are allowed to produce interest further. This is nothing but compounded interest.

Compound interest is a magical way to make money by earning interest upon interest based on an initial investment. Keep compound interest working positively instead of negatively with advice from afinancial planner in this free video on investments. Expert: Cathy Pareto Contact: www.cathypareto.com Bio: Cathy Pareto has an MBA, and is the founder and president of Cathy Pareto & Associates, Inc., based in Miami, Fla. Filmmaker: Paul Muller
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Which Bank Offers the Best High Yield Money Market Account?

Which Bank Offers the Best High Yield Money Market Account?

The banking landscape has become ultra-competitive as people look for the best possible deals. One of the best ways to grow your savings while still getting the flexibility and convenience of writing checks or making withdrawals is through a high yield money market account. Because competition between banks is so fierce, many banks are offering excellent deals in exchange for your business and loyalty as a customer.

Shop Around for the Best Deals

There is no single bank which consistently offers the best high yield money market account. Because money market rates can change on a daily basis, the bank which offers the highest rates of the day may not tomorrow. That’s why it’s important for you to shop around and do your research. There are plenty of websites which display current money market rates and give recommendations and reviews on which bank gives you the best deal on a high yield money market account.

Take Advantage of the Competition

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Because you no longer have to make do with the money market rate advertised at your local bank, you can grow your savings even faster by comparing rates online. Small, rural banks, national branches, and even online-only banks are all looking for ways to earn your business. Now is the time to take advantage of this competition and act quickly when you find a high yield money market account.

One of the banks which offers great deals on a high yield money market account is Aurora Bank (Equal Housing Lender, Member FDIC). In addition to offering a competitive rate, they also allow you to write up to six checks per month. You can also link your money market account to other accounts for added overdraft protection. Plus, as long as you keep a minimum of 00 in your account, you won’t pay any monthly fees.

Why Choose a Money Market Account?

Today’s money market accounts are hybrid of some the most popular banking products. They give you the ability to write a specified number of checks each month while paying you interest which is comparable to a savings account without the monthly account management fees, so long as you maintain a minimum balance. Plus, unlike certificates of deposit, your money isn’t tied up over a long-term and you won’t pay a penalty for early withdrawal.

You should create a savings plan that lets you deposit funds into your money market account is Aurora Bank regularly. This allows you to grow your savings quickly while earning a competitive interest rate. Plus, like other banking products, your high yield money market account is insured by the FDIC for member banks, which gives you added protection in the rare and unlikely event that the bank should fail. This added security helps you grow your investments while creating a savings plan that works for you.

Are Money Market account opening may have an impact on my financial future?

Are Money Market account opening may have an impact on my financial future?

Younger consumers who want to plan your financial future, it is important to find ways to invest their savings wisely without running a huge risk of losing their money at all. Although there are many variations, such as contacts and mutual funds and 401k investments, among other things, it is also important to diversify instead of all your eggs in one basket. Working as a money market account, the overall financial strategy is a great feeling but younger customers looking for safe alternatives for at least part of their future savings. In addition to struggling economy, mutual funds and 401k may decide on the basis of the return of an investment account, which beat type are included in mutual funds or 401k. With a money market account, and the total yield is a lot of conservative nature, the money would be protected and even the slightest return to a struggling economy in unexpected ways.

With the global economic crisis that has gripped the financial world since the mid-2000s, many corporate and investment banking institutions have lost a lot of money because of their high-risk speculative investments in bonds and securities of the package. Many banks also failed as a result. Although Money Market Interest rates actually declined during that period, in some cases less than one percent of the $ 10,000 minimum balance, they still do not lose money. Money market accounts are certainly considered to be conservative choice in terms of investment, but to one percentage point a lot better than losing millions. Consumers still have the opportunity to take limited number of transactions in their money market account, and as long as they maintain a minimum balance, will be eligible for low interest yield. Ask for a consumer who has a low interest rate money market savings accounts, and the other, which will take place during the Lehman Brothers account and ask them who is currently better than they are. Guess is, considering that Lehman Brothers, one of the largest investment firms in the U.S., went bankrupt, the answer will come from a person with a lower yield money market option.

Diversity of investment means more consumers today than ever before. Make the smart choice in terms of how your savings will provide long-term results may be difficult, especially for the ever-changing economy. However, the decision to open an account in your investment portfolio should always be able to protect themselves from high-risk, high-yield accounts that they can be volatile and even a hint of bad economic news.

High Yield Money Market

High Yield Money Market

You have made a decision to invest in the stock market but there is an air of mystery to you about how to do it. If you are a beginner investor you want to start out slowly and learn all there is to learn about stock market investing. Buying stock is not at all like buying a house or a car where you are not looking for a large return, or any return on your money. When investing in the market you are looking for that investment to give you a healthy return. To get on the ground floor of a stock that you feel might eventually have growth potential or one that will get you a healthy return you should investigate growth investment opportunities.

A high yield investment is one that is ranked as very low by a rating agency because it has a high rate of default and that is why they have to offer higher returns. A stock will offer a high dividend yield to make up for lower capital gains. A large company in an older industry that no longer has a change for growing will give a high yield for someone investing in their company.

High yield investments can be made in Cd’s, bonds, money market and more.  High yield bonds are those that don’t qualify for the investment status and has a chance of default. The higher the yield on these bond is, the tighter the credit market is which means that the opportunity for borrowing for businesses is fewer. Businesses that are unable to get financing will generally issue bonds.

A high yield money market account is one that offers a higher than average return on your money. In a high yield money market account you have three ways to access your money: free checks, ATM card and online transfers. You do have the security of FDIC insurance which insures your money up to 0,000. If you are looking to save money then check savings accounts online to earn the highest interest yields. However, the higher interest account will probably require a higher minimum balance to open an account.

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