Mutual funds question.

[hawing]

So, on Wednesday my mother sent me an email titled "Financial dilemma." I gulped a bit and opened it, to find that her Freddie Mac bond is being called so she will soon have a five figure sum of money to re-invest or spend. She is leaning toward reinvesting.

 

Her financial advisor has made a couple of mutual fund suggestions (Franklin Income A and PIMCO Total Return C) for reinvesting, but my mom would like to find a more independent source (like a website) for rating/comparing mutual funds. For some reason, she is asking me for suggestions (despite acknowledging in her email that I am no particular financial whiz).

 

So if anyone can suggest websites that are reasonably reliable for rating or comparing mutual funds, I'd appreciate it. Then I could go back to pondering why she is asking me financial questions instead of her financial advisor. Thanks in advance.

[nate82]

This site isn't free but it is the best site for comparing and the rating of mutual funds.

 

http://www.morningstar.com/

 

I listen to these guys on Sunday mornings every once in awhile they are on 620.

 

http://www.mutualfundshow.com/

 

As for other sites you can always use Yahoo! Finance to do some research on them. Though morningstar is probably the best her financial advisor probably has access to that site at least any financial advisor that is smart would subscribe to that website. Morningstar was the only thing I used in college when doing my finance research.

[endaround]

Hawing I'd guess your mother is in her late 60s early 70s? If she might need the money within the next few years putting it in a CD where the principal is protected and is fairly liquid might be the best option. Keep in mind thaqt depening on ehr age she mgiht still be able to put a bit in an IRA

[MJLiverock]

Morningstar probably has the most information, even the Yahoo Finance site relies on some of the Morningstar stuff. I can tell you that Pimco Total Return Fund is a pretty good to great fund. My wife has it as an option in her 401k. PIMCO does a very good job on fixed income funds, they don't call Bill Gross the Bond King for nothing. It is a pretty stable low risk fund since it is fixed income. But remember that as interest rates increase fixed income instruments like bonds or even CD's lose value either explicitly or implicitly in the CD case. I would keep terms pretty short on any CD or bond at this point since rates can pretty much only go up from here.

 

I noticed the funds were C class which may mean higher fees or deferred sales charges if I remember my mutual fund stuff (I don't use them myself so I forget all the classes). You may want to look at www.ishares.com for an ETF option that can get similar returns but avoid the sales charges and have lower managment fees.

[dadofandrew]

If she is in her 70's, the stock market is not a place for her, unless this is purely "fun money". What does she want to do with this money? Spend it someday? Transfer it to her kids? Use it to supplement her social security? Is she comfortable, or living month to month? Health? Life insurance?

 

Also, if she invests in a CD, the interest is taxable, if she makes enough, which would make her return almost negative at today's rates.