Investing In Your Future: Making The Right Choices In Your Retirement Portfolio

It is important when you start investigating where you will put your hard earned savings that you concentrate on the stock market. Mutual funds are the most popular vehicles to place money in the long term.

Warren Buffett, a multi-billionaire with a knack for savvy investing, says that the best way to invest money is to do a thorough analysis of the companies you invest in. Timothy Armour, the chairman of Capital Group agrees with that astute assessment.

Timothy Armour went one step further in saying that there is a danger in just investing in passive funds or in only active funds. You definitely need to create a balance between these two extremes. The fact is that companies that show good investment returns over the long haul are better investments than companies that switch up investments every few years. This also goes for companies that trade heavily.

Armour’s knowledge of the stock market and fund management comes from his over thirty year career with Capital Group. Capital Group is known as the world’s oldest and largest investment companies. Their employees understand that long term focus provides its clients with the stability and reliability they need for their retirement.

Armour suggests that there are two simple factors in play when you start investigating and choosing funds. These are low expenses and high manager ownership. The reasoning is that high manager ownership shows that the managers are committed to the growth of the company. High cost funds don’t yield as much for investors.

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