Any ways to make additional income?

There is no risk with mutual funds. $500,000 in a mutual fund and you earn $40,000 a year tax free, every single year. It's actually$58,000 but you should leave money in there each year so it grows.

 

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1 mutual funds are not “no risk” although they are lower risk than other stock purchase investments can be
2 they are taxable when you make money/ pull money out of them

Because they are safer/lower risk than other investments, the assumption that there will be a consistent 11.x% annual yield should be quite a red flag to any potential investor.

If i were to hazard a guess on your proposed numbers: a likely return on a mutual fund with return consistency over a period of years- likely 1.1x% would be a closer yield. Certainly under 5%.
Remember Bernie Madoff? His annual return for “investors” was 8.x% and far and away the highest; which is why so many people put their money with him. And it was an alleged high rate of return because it was a criminal scam.

 

Bootleg Coors?

 

People lost half their investments in the 80s, again in 08.But they recovered.Its a long term game. If you’re young enough, especially under 30, it’s a no brainer. Can’t lose.

 

If you only bought the s&p 500, the return is 12 percent a year.

Mutual funds are risk free. The history of America shows that. Dips are always temporary. If the s&p went to 0 the dollar would be worthless, and anarchy would rule. Then your retirement would be spent killing people for food.

Really. Research it. It would be hard to find a growth mutual fund under 10% annual return.

If Madoff only paid 8% then people were suckers.

Do the research. Even an index mutual fund pays 11 percent over the last 10 or 20 or 80 years.

 

I mean, I am not saying they arent worth investing in- but the percentages aren’t reflected in the numbers you’ve given/


I would be interested in seeing a specific profile of what you are looking at?

 

There's a difference between any mutual fund and an indexed mutual fund which for instance mirrors s&p 500
with minimal maintenance cost.
example Vanguard Total Market Fund VTSX which encompasses s&p 500. Here's 10 year growth of $10 000

 

So, right out of the Great Recession, right into the biggest printing of free money in history? Not very good long term look IMO.

 

The longest I could plot on the graph. If you interested with more go and find S&P 500 and you'll see the growth from the time of its birth.
Perhaps the growth before 2000s was flatter but still steady. The point is, indeed, historically there is no LONG TERM risk of losing money in those funds. I mean, except a hypothetical risk where the whole of US economy is going to collapse and and there's nothing left. Absurdity such as in a scenario where China invades and confiscates all the American wealth.

The most important difference is that with indexed funds, you don't pay manipulatory fees to the fund managers as the indexed funds manage themselves, they just plugged to the undelaying stocks that represent pretty much US business in a total growth. It has been shown, that in the long term, a mutual fund manager won't outperform the market (which is what the indexed funds reflect).
All I can say, is that I wish I started investing with Vanguard, 10-20 years earlier. No adrenaline but nice and steady growth.

 

That's a classic.