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Three to six months of expenses is considered good. David Ramsey has lots of good info and suggestions. He recommends starting with $1000 in an emergency fund and then paying off ALL debt. Then saving the 3-6 months worth of expenses.
A savings account should be a vital part of everyones financial planning. It is good to have separate savings and checking accounts to better prepare for your future.
An index fund can be a great investment. If you read the works of John Bogle (who founded the Vanguard Group), he argues that an index fund has the best possible potential of maximizing your return with little risk and, more importantly, costing you the lowest amount in fees. The more you pay in fees, of course, the lower your return. A good index fund like an S&P 500 index fund or a total market fund performs well over time and won't cost you much.
Both have their own merits and demerits. Open ended funds are good in a way that, if you know that a mutual fund is performing exceptionally well, you can go ahead and invest in them whereas in case of close ended funds you cannot do that. At the same time, close ended funds are good in a way that, you don't have to worry about fresh investments or frequent withdrawals from the investors. The fund manager can think of a long term plan to make a profit with his investments and stick to them, whereas in case of an open ended fund the fund manager has to take into account fresh investments and redemptions during his investment strategy and that may affect the returns of the funds.
Dividend equalisation refers to the distributable portion (non taxable) of the fund created to equalise the dividend payable on units purchased at different times. It is also revenue reserve that acts as a buffer between a certain dividend level and profits available. The sums are usually transferred to this reserve account in good years, and withdrawn from in poor years to maintain the dividend amount.
I have a savings account nicknamed "Family Fund" and a checking account nicknamed "Life Expenses" - KJ
Three to six months of expenses is considered good. David Ramsey has lots of good info and suggestions. He recommends starting with $1000 in an emergency fund and then paying off ALL debt. Then saving the 3-6 months worth of expenses.
No. The funds in your PF Account is for retirement and not to fund your regular expenses
A good retirement fund has a varied portfolio that includes GIC's, mutual funds and regular tax savings account and a retired savings program fund. Going to a financial institution and obtaining information is also a good source for retirement options.
This depends on the company that you are doing the investments with. Each company has different requirements which are needed for an investment account.
A savings account should be a vital part of everyones financial planning. It is good to have separate savings and checking accounts to better prepare for your future.
Mutual funds are monies put into an account similar to a savings account. However, you must leave the monies in the fund for a certain period of time for you to make any interest money on it.
Emergency notification services are good for notifying individuals in an emergency. The service will notify you when there is an emergency and the specifics of the emergency. They are very reliable and efficient.
Yes they are good. aAny mutual fund is a good choice. You can choose to make regular payments or open an account with one large payment if your incoe isn't steady.
You can stop using credit cards, create a budget, lower your interest rate, build an emergency fund but the first thing you should do is consult a credit counselor as they are experts.
Invest it in a good place...
You need to do your research before choose a mutual fund. Find a fund that offers dividend distributions. A fund that invests heavily in stocks is good for capital growth.