Posts by jsangl
The Mutual Fund Series: American Funds
The is the latest installment in the weekly series featured at JoeSangl.com – The Mutual Fund Series.
During each part of this weekly series, I will be looking at a specific mutual fund company.
Today's company is American Funds.
American Funds has been around since 1931 and is one of the largest mutual fund companies in the world with over $900 Billion in investments and over 40,000,000 shareholder accounts. American Funds is owned by a larger company – The Capital Group Companies.
What I Like About American Funds
- Great performance long-term. The track record of American Funds has been terrific!
- Long-Term Approach. They use a team-approach to manage their mutual funds. They manage money extremely well in down markets. They have absorbed hits like the 1987 crash and the bear market of the early 70s and have performed well.
- Experience. Their advisors have an average of 22 years of experience with American Funds. That is unheard of in today's world!
- Low Initial Investment Requirement. Most American Fund mutual fund investments can be started with just $250 and a commitment to invest at least $25/month. That is great! It allows anyone to start investing!
- Low Expense Ratios. They have low expense ratios when compared to most mutual funds. They are higher than Vanguard, but are about half of comparable mutual funds.
- Tools. They have a nice retirement planning website HERE. I really like their "quick analysis" retirement planning calculator HERE. It told me good news – that they believe I can retire someday! What does it tell you? You can also check out my "retirement nest-egg required" calculator (located on the "TOOLS" page or click HERE).
What I Would Like To See Improved At American Funds
- Sales Charges. To purchase American Funds directly, one has to be savvy with on-line trading websites or else one will have to work through an advisor. This means that there will be a "load" when one purchases American Fund mutual funds through a broker. If one is just starting out, it could mean that one will have to pay up to 5.75% for all new money invested. This load drops as more money is held in one's account, but the lower charges start after one achieves six figures in their account.
American Fund Mutual Funds I Own
I currently own six American Fund mutual funds.
- AMCAP Fund A [Ticker: AMCPX]
- Capital World Growth and Income Fund [Ticker: CWGIX]
- Fundamental Investors A [Ticker: ANCFX]
- New World Fund [Ticker: NEWFX]
- The Growth Fund of America [Ticker: AGTHX]
- The Investment Company of America [Ticker: AIVSX]
American Fund Mutual Funds That I Am Considering Purchasing
- The New Economy Fund [Ticker: ANEFX] I like the growth potential of the markets this fund will be investing in.
- EuroPacific Growth Fund [Ticker: AEPGX] Same as The New Economy Fund – I really like the potential of the markets this fund will be investing in.
What American Fund mutual funds do you own? Do you have any American Fund mutual funds that you really like? Any you really dislike?
Love learning about mutual funds? Love a little competition? Maybe the "You Pick 'Em Mutual Fund Game" is for you! Contestants have until the end of April to enter their mutual fund selection.
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This Is About Right!
Someone sent this picture to me, and I thought it was very appropriate!
I am ready for gas prices to go DOWN for once!
My book, I Was Broke. Now I'm Not, is available via AMAZON.COM, BORDERS.COM, and PAYPAL. You can read the Introduction HERE.
Life Happens: The Transmission Edition
You may have caught in yesterday's post that I absorbed a major expense like the transmission going on my GMC truck. Well, that happened this month.
So here is the story.
I bought this truck from my brother nearly seven years ago. He had purchased it new. Early on, I noticed that the automatic transmission would shift hard whenever I drove the truck over long distances. Once it had cooled, it would go back to shiftly nice and smooth.
So way back in 2002, I took it in to my trusted car repair guy, and he said that I should just drive it until it broke.
So I did. It took nearly seven years for it to fail. I won that gamble!
I took it in to my new trusted car repair guy, and he diagnosed it as "Dead On Arrival". Upon opening the transmission, he could not believe that I was able to even put the car in reverse.
The cost? $1,953.35. That included replacing a broken door handle, an oil change, and some other small stuff.
Man, am I glad I have a savings account for just this sort of stuff! In the old days, I would have been pulling out the credit card.
Maybe I should ask you the question. Do you have money saved up for a car repair?
I am not a prophet, but I can guarantee you that your car WILL break down. It may be today. It may be ten years from now. But something is going to break. When it does, will it crush your finances or will it just be an annoyance that you have saved for?
My book, I Was Broke. Now I'm Not, is available via AMAZON.COM, BORDERS.COM, and PAYPAL. You can read the Introduction HERE.
SAVE for the UNKNOWN emergency
There was a day that I was completely broke and had an average bank balance of $4.13. It was awful living with no margin. Anytime an issue cropped up, we had a problem AND a money problem.
One of the best things that Jenn and I did was save money into an emergency fund. What can the money be spent on? I am not sure … I have NEVER spent the money! Seriously, in over five years of having an emergency fund, we have never spent the money.
Did I have an emergency? Well, others might have called them emergencies, but the Sangl household did not. Let me list just a few of the events that have occurred.
- Jenn had major surgery that blew up the $2,300 insurance deductible.
- Ten months later, Jenn had to have the surgery AGAIN. AND it was in another deductible year.
- Power steering went out on the car.
- Transmission went out on the truck.
- The dryer died.
- Huge leaky roof problem.
- I had hernia surgery that blew up the $3,000 insurance deductible.
The Sangl household did not use the emergency fund for ANY of the above expenses. Why? Because they are not really emergencies!!!
Think about it this way.
- Is it a surprise that humans get sick and need surgery? NOPE.
- Is it a surprise that cars break down? NOPE.
- Is it a surprise that an appliance breaks? NOPE.
- Is it a surprise that roofs will leak? NOPE.
When I really think about it, I am not sure we will ever use the emergency fund but it is incredible knowing that it is there!
I wonder if HAVING an emergency fund in place scares off emergencies?
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I Had A Blast In Suwanee, Georgia!
I had a BLAST carrying the crusade to Fusion Church (Pastor Tony McCollum) in Suwanee, Georgia!
In the morning service, I was able to share my story of walking out of financial mismanagement and into financial freedom.
Then, in the afternoon I was able to teach the Financial Learning Experience! I LOVE teaching this class! I get to teach THE TOOLS that Jenn and I used (and still use to this very day) to become financially free. Every time that I teach these tools, I get all FIRED UP. Why? Because I know what it did for Jenn and me!!!
Thanks, Fusion Church, for allowing me the privilege to teach!
Have YOU checked out the FREE tools? Just click on "TOOLS" at the top right-hand corner of the page or click HERE!
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