Mutual funds are investment schemes that asset management companies launch to collect money from numerous small investors. These corporate enterprises then invest the capital they gather from these investors into various kinds of financial securities. These include company stocks, corporate bonds, real estate properties, commodities, and short-term debts. The schemes are run by investment specialists known as fund managers who allocate the purchase and sales of the financial securities. The objectives of these experts are to generate lucrative returns and capital gains for the mutual funds’ investors. The structure and manage the mutual funds’ portfolio to match the investment goals in the prospectus.
Jeffrey Small is a leading financial advisor from Florida and the best-selling author of Turning Financial Planning Right-Side Up’. He assists people in choosing suitable retirement investment options and has 32 years of industry-based experience. He even appears on various talk shows which popular television channels like Fox Business and CNBC broadcast. He explains and promotes his financial strategies to potential retirement savers through these media channels. Currently, he is the founder and President of Arbor Financial Services of Florida, Inc. This is a prominent SEC-registered Investment Advisory Firm and the Retirement Income Store franchisee.
In the opinion of Jeffrey Small Arbor Financial team of specialists, most people opt for employer-sponsored pension plans. These are good investment schemes for them in the long run, especially if they start saving at an early age. However, the pension schemes’ accumulative income might not be enough to help them lead a financially secure lifestyle. In this scenario, they need to look for and invest in other viable retirement investment schemes. The experts suggest these retirement savers should consider investing in suitable mutual fund schemes for the following reasons:
- Allows them to diversify and mitigate unsystematic financial risks over a large pool of assets,
- It will enable them to invest in a diverse portfolio of financial support with a small capital,
- Encourages investors to save money and support for an extended period to build their wealth,
- It offers the retirement savers lucrative after-tax returns than other similar investment schemes, and
- Provides investors with the option to liquidate or convert their holdings into cash in times of need.
Above all, professional financial managers with the requisite qualifications, expertise, and experience run mutual funds schemes on behalf of the investors. They know the intricate details of how the financial markets work, including the effects of volatility. They can make the best decisions to ensure investors earn lucrative returns on their portfolios.
According to the Jeffrey Small Arbor Financial team of experts, mutual funds can be a viable investment option for small investors to earn a lucrative post-retirement income. However, they should thoroughly read the prospectus and offer the schemes’ documents that suit their needs. This step lets them know the schemes’ potential risks, returns, period, and net asset value (NAV). They even consult a reliable financial specialist on the matter.