Question:
Ill make it short. Have a mutual fund that has done well in the past, not a banner year this year, but have been happy with the pick. Got a notice in the mail, in short, they now charge about $22 per quarter maintenance fee. SHould i sell and transfer money to a stock trading account where i think i have gotten into a good "group" and have make more money trading in the last year than i have of doing on my own for 5 years?? IM just getting tired of seeing the never ending credit card bills and think this might be my one chance to clear them up. Note this fund is also like a emergency account, just in case something major comes up, i can get my hands on a few grand in a week. If i take the chance and do some trading with this , always the chance i could lose it, i have lost money not being able to get out at the right time, but i cant watch all day every day. Opinions please....
Answer:
You didn't say what type of mutual fund your investment is in but I'm assuming its in an equity fund.emergency funds have no busines being invested in the equity markets regardless of whether it's in the form of an equity mutual fund or individual stocks. Sell out of the fund and get the money into a money market fund, bank cd, savings account or a combination of the three. Just because mutual funds provide you with liquidity doesn't mean it's the appropriate vehicle for your emergency funds. During periods of time when the stock market is going up people tend to forget that markets also go down, sometimes dramatically and sometimes bear markets last a number of years...Don't forget that only 7 years ago the NASDAQ market lost 70% of its value and took years to recover.
I do not know how really well is your mutual fund giving you the percentage of returns per year. If the return is not 24% a year, I would suggest you transfer out and pay for credit card bills which charge you 24% interest.
I can help you for FREE.
Let me know what Mutual Fund are you using.
It is likely my picks will make you more money.
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