Episode 117: Where Can I Find Mutual Funds with 10 Percent Returns?

Today’s Prep:

On the lookout for mutual funds with high returns because you’ve heard it’s possible? David answers three questions from the mailbag in today’s show as you make financial decisions.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Do you have a question of something going on in your financial life? On today’s show, we feature three questions to see what David advises.

Beau needs about $5,000 a month in living expenses in retirement. His Social Security and pension total about $5,300. Does this mean his entire 401(k) will be able to be left behind for his son? Not necessarily. Don’t forget about inflation! Basic living expenses will go up 10, 15, and 20 years from now. Make sure your financial plan has an inflation calculation in it. Also, consider healthcare costs as you age. Hopefully there is some leftover to pass on, but don’t assume it’s all going still be there later on.

Shanna says some people in the media say she should invest primarily in mutual funds and can expect annual returns over 10 percent. Where do you find these funds? Remember that the stock market goes up and down. When you put in a model that is unrealistic for the market, your retirement plan will be far from reality. You have to account for the down years. Then, consider whether stock mutual funds are the right funds for you over index funds when it comes to fees.

Finally, Derek’s aunt recently died and left him her house as well as some cash. He never considered buying an investment property but is now considering keeping it as a rental property. Which is better? David says it’s an investment either way, but one is an active investment and one is a passive investment. Are you willing and ready to do maintenance and upkeep on a rental property?

Reach out to David Dickens and his team with your questions and make sure your financial plan and goals are headed in the right direction.

Listen to the entire episode or click on the timestamps below to skip to a particular question.

[1:22] – Mailbag: Will my Social Security and pension be enough?

[6:07] – Mailbag: Where can I find returns that earn over 10 percent?

[11:53] – Mailbag: Should I keep an inherited house as a rental property?

[15:08] – What do you do with an emotional inheritance?

Today’s Takeaway:

There’s no free lunch in investing. It kind of boils down to: how much diversification do you want? And what are your personal skills?”

– David Dickens

Additional Resources:

PODCAST: 4 Steps to Help You Plan Ahead for Taxes in Retirement

5 Keys to a Strong Financial Foundation

The Story Behind GameStop Stock


More From David:

The host: David Dickens

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