Questions From The Public


"Ask Paul" Question #392
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My parents need some advice. They have $62,000, and it's their entire nest egg. They collect $1,400 a month in Social Security and have no other source of income. How should they invest their $62,000?

"Ask Paul" Question #391
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I have recently changed jobs and I'm rolling my 401(k) account over into an IRA. My broker wants me to put all the money ($24,000) into AIM mutual funds: Aggressive Growth, Blue Chip, Constellation, Global Telecommunications and Technology, Select Growth, Value and Weingarten. I am 29 and want to be pretty aggressive. Is there a better fund family? What do you think of the AIM funds?

"Ask Paul" Question #390
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I need advice on short-term investing. I have about $2,000 saved for a house down payment and want to put it in a low-risk, high-earning mutual fund for about three years. I have relatively low tolerance for losing the principal. The only other savings I have is my $15,000 retirement fund. Would you recommend a good mutual fund for this investment?

"Ask Paul" Question #389
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I am in the military and will retire next year with a pension of about $17,500, indexed to inflation. I need an income of $40,000 a year, indexed to inflation. I have about $110,000 in certificates of deposit that I have saved to buy a home. In addition, we have about $425,000 in  taxable and tax-deferred mutual fund accounts, including Vanguard 500 Index, Vanguard Total Stock Market, Vanguard Extended Market, Vanguard Total International Stock Market, Vanguard Small-Cap Growth Annuity and White Oak Growth Fund. Can I realistically retire next year on this income and these investments?

"Ask Paul" Question #388
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I am 27, married and have two daughters, 17 months and one month old. I just bought a house and have about $2,000 in savings. How do I start investing for college for both girls, retirement and emergencies? I make about $40,000 a year, and my wife stays home with the girls. I have no debt except a mortgage and a car loan. How would you recommend I get started?

"Ask Paul" Question #387
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I enjoyed your column "Do Mutual Funds Split?" But in the last paragraph I was confused by your statement about large mutual funds "hitting a natural brake." I am heavily invested in Fidelity Magellan Fund through my 401(k), and it sounds to me like that fund’s future growth might be restricted in some "natural" manner. Please help me understand this further.

"Ask Paul" Question #386
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I would like your opinion on the wisdom of investing in the T. Rowe Price International Stock Fund. It is the only international fund I have available through my work.

First of all, it’s a fine idea to invest in an international fund, and I presume you are speaking of a 401(k) or similar retirement plan.

Second, if this is the only international fund available, then I think your real question should be something like this: "I want to invest in an international fund, and the only one available to me is T. Rowe Price International Stock. Is there any reason I should avoid this fund?"

"Ask Paul" Question #385
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In 1978 I inherited some stock which I consider to be my 16-year-old’s college fund. Those shares are now worth more than he’ll ever need for college. He will earn $2,000 this year, and I want to set him up with a $2,000 Roth IRA. Which Vanguard fund should I use to start the Roth IRA?

"Ask Paul" Question #384
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I have been a buy-and-hold investor for about four years, and I invest in mutual funds. One of my funds is AIM Global Technology, which I bought in October 1999. It grew to a gain of 135 percent, only to fall back to a gain of about 18 percent. Would it have been wise to sell some or all of my shares when they were up 50 to 60 percent? Or is a buy-and-hold approach still the way to go?

"Ask Paul" Question #383
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I have been a buy-and-hold investor for about four years, and I invest in mutual funds. One of my funds is AIM Global Technology, which I bought in October 1999. It grew to a gain of 135 percent, only to fall back to a gain of about 18 percent. Would it have been wise to sell some or all of my shares when they were up 50 to 60 percent? Or is a buy-and-hold approach still the way to go?

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