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I post this (inexhaustive) list of general investing perspectives to (1) document them for my future reference, and (2) in hopes that others might find them to be useful.

• Opt for fee-based financial professionals over commission-based ones. Since their remuneration is not tied to the sale of any particular product, they will be more likely to give you unbiased advice;
• Opt for unmanaged, or index, funds (like Vanguard 500) over actively-managed ones, or better yet, for total stock market index funds (like the Wilshire 5000). Over the long-run, index funds outperform even the best managed funds;
• Opt for funds with expense ratios less than 1%. You do not want to eat away at your returns by doling out exorbitant fees.
• Opt for no-load funds. Two words: NO LOADS.
• Take advantage of dollar cost averaging (DCA). (1) It is less painful to put away (relatively) small amounts on a regular basis, and (2) you are able to ‘buy into the market’ when the prices are low, thus spreading (or “averaging”) the cost to you;
• Consider exchange traded funds (like iShares 500), for their liquidity and lower expense.

Finally, here’s a summary of Suze Orman’s financial to-do recommendations (from her The Money Book for the Young, Fabulous & Broke):

1. Invest in your employer’s 401(k) program, up to the maximum match;
2. Pay down credit card balances; ask c/c company for interest rate reductions; transfer balances if necessary;
3. Save for a home downpayment using a money market deposit account (MMDA) or money market mutual fund (MMMF);
4. Open a savings account to build an 8-month emergency fund;
5. Fund a Roth IRA to the annual maximum;
6. Go back and fund your 401(k) to the maximum.

 Please feel free to share your own investing perspectives by posting a comment.

I share the sentiments of MyMoneyBlog’s author, about criteria for chosing an investment brokerage… The brokerage should exhibit all of the following characteristics:

1. carry index mutual funds,
2. have a large selection of no-transaction fee, no-load mutual funds,
3. have low expense ratios,
4. have minimal fees — and definitely no “hidden, tricky” ones, and
5. have a Web site with a good (useful, usable, and user-friendly) interface.

Some Suggestions:

Discount Brokerages

• Muriel Siebert, (800) 872-0444
• Scottrade, (800) 619-7283
• Fidelity Brokerage, (800) 343-3548

No-Load Mutual Fund Companies

• Vanguard, (800) 662-7447
• T. Rowe Price, (800) 225-5132

Share your perspectives and/or experience on this subject by posting a commment.