Mutual obligations should be part of your financial plan, expert says

(KGTV) – Whether it’s going to the grocery store, getting gas, or buying just about anything right now, we’ve all been hit by inflation.

Our dollars don’t go that far these days, and as a result, there may be a need to refocus thoughts on wealth accumulation.

As part of our Making It In San Diego series, we speak with a Certified Financial Planner who says now is an important time to consider mutual funds.

A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks and bonds. Investors buy shares in mutual funds. Each share represents an investor’s share of ownership in the fund and the income it generates.

But before diving into this subject, some advice if you are a woman. You really should see this. It could make a big difference in your life.

Why? Because women statistically live longer than men.

Nationally recognized financial expert Ginita Wall, based in San Diego, has spent decades educating women about money and how to become financially independent.

Wall recommends mutual funds. Mutual funds have professional fund managers who buy the stocks for you. Investors do not directly own the shares of the companies purchased by the fund, but they share equally in the profits or losses of all of the fund’s holdings – hence the “mutual” in mutual funds.

In this economy, Wall says we need to have a balanced portfolio of savings, stocks and bonds. She suggests using one of the lower cost funds such as Vanguard, Fidelity or Schwab.

“So you have money that’s invested in the stock market for the long term, and money that you’re going to need in the next couple of years, you stick closer, because you don’t want to take it out of the market. fellow at a bad time.

Wall says the amount you put into stocks versus bonds will change as you get closer to retirement. A bond is a loan to a company or government that pays investors a fixed rate of return over a specified period. If stock markets fall, bonds can help cushion the blow.

The key is a “balanced fund,” and the fund manager does the rebalancing.

“Mutual funds are amazing. Take as little as $25, around $100, then you can add to that. So if you add little by little over time, it really is the most important way to grow your money. – Wall

The takeaway here is “to add to it”.

“People who save $100 once and leave it there won’t get you very far. It’s the addition month after month, year after year, over time that really creates wealth. – Wall

Wall says if you save and invest $5 a day from age 22, you’ll be a millionaire by age 65.