Foundations of Finance

Several years ago, my highschool business and marketing teacher, in an attempt to convince us to “sieze the day”, exhorted the entire class to seriously consider opening a mutual fund while at such a young age.  He explained some of the legal implications, but specifically mentioned the huge economic benefits that it could bring in later years.  Of course the attitude of “want it now” put a damper on the idea, seeing as how we would have to wait for said benefits, but nonetheless he called on us to give it a try.  Today in a whirlwind economy, we are hardly interested in trusting financial firms, banks, and so on.  However i am still convinced that financial advisors are not motivated by commission in aquiring us as clients, but rather enjoy studying the market and will help us fullfill life’s adventures through wise investments in stocks, bonds, and investments in certain markets and fields.Talking to an advisor is simple, many places such as Merrill Lynch (now operated under Bank of America) Edward Jones, Charles Schwab, and some that operate without financial advisors which are Fidelity and TD Ameritrade, are all useful in helping us invest, even online and in newer markets.  Many of these advisors are not paid based on commision, but instead help us as client in our “allocation of assets.”  While it is important to read the fine lines, and be careful avoiding risks, we don’t have to fear mutual funds, because they can only be used at our personal discretion, and at the professional guidance of a fund manager.  Today, more new money has been introduced into mutual funds than any other time in history.  Mutual funds are on the rise, so carpe diem!