|
Q: I don't have very much money, but I would like to start investing. What would be the best way to start?
MsFF: My hats off to you! Just the mere fact that you are interested in investing is the first step toward building the foundation for a secure future. Contrary to what you may have heard, you don't need a lot of money to start investing, you just need the right investment vehicle. When you have limited funds, the best way to get a good solid return while minimizing risk is to invest in a Standard & Poors 500 Index Fund. Some Index funds will let you start with minimum initial purchases less than $250 and some like the Munder Index 500 K (symbol: MUXKX) will let you open an account for any amount. There is no minimum initial purchase required. Over the last five years, the Munder Index 500 K's average return has been 25.53%. If you need more help selecting the right mutual fund for you, please look at our series on mutual funds in the investing section. Get Started in Mutual Funds
Q: My husband and I are refinancing our house. I know what interest rates are, but what are points and how does it affect my loan?
MsFF: In a nutshell, points represent the interest that you prepay at the time you close the loan. Each point is 1% of the loan amount. So if you have a $100,000 loan with 2 points, you will prepay $2,000. Many lenders will lower the points in return for raising the interest rate by a fraction (around 1/8% or 1/4%) or if you would like a lower interest rate you can pay more points. Although, it will cost you more money upfront, it's usually better to go with a lower interest rate if you plan to keep your house for longer than five years. You will pay more points, but you will reduce your long term costs.
When you are looking for the best loan with the lowest interest rate and comparing different rates, be sure to ask the loan broker to quote you both the interest rate and the points. When I comparison shop rates, I ask the loan broker to quote me their best interest rate at "0" points that way I can compare the rates "apples to apples"....and that's a "point" well taken .
Q: How can I prevent from being taken advantage of by the auto mechanic?
MsFF : Auto repair fraud, now that's a sore subject. We bow down to the "great" mechanic in our time of need and what happens - we get ripped-off! It's a true fact that most auto repair fraud happens to women. The way to prevent it is to start with your owner's manual and begin learning some basics about your car. Next, click to our article on auto repair rip-off to get the full story.
If you have a question for MsFiscallyFit just e-mail it to: myquestion@msfiscallyfit.com
All questions become the property of MsFiscallyFit.com and we reserve the right to edit the content for our use.
|
