How to invest for maximum return
Are you looking for a way to maximize you investments? Are you close to retirement with a small nest egg? Has your financial manager been a disappointment? You've come to the right place. I’m here to help and share my techniques for sound investments and excellent returns.
I invest in dividend paying mutual funds. I have searched out a single fund that pays and excellent yield on its dividend. This mutual fund pays a monthly fixed dividend and has been doing so for several years. GABUX is a NTF (No Transaction Fee) mutual fund. NTF funds cost nothing to buy and sell but you usually have to hold them for a minimum period, typically 90 days, before selling otherwise you incur a fee. GABUX pays $0.07 a share per month which works out to about 1-1.2% yield per month. In a year, you would earn 12-15% yield on your investment in dividends. So if you didn't reinvest your dividends, you would essentially double your money every 6 and 2/3 years in dividend payments alone. If the share price didn't change and you reinvested your dividends, you would double your money in nearly 5 years. Even with share price fluctuation you should still double your money in just over 5 years or possibly less. See the monthly payouts of GABUX at Google Finance. Zoom out on the chart to see all of the dividend payments and yields.
I personally like dividend paying stocks and funds that pay monthly versus quarterly or yearly. There are a few reasons I like monthly dividends. One reason is that I like the consistency and ability to plan on that dividend every month. It helps me pay my monthly bills, save money, and reinvest. Another reason I like monthly dividends is that if I reinvest every month, I get the benefits of Dollar Cost Averaging. Here's a link that explains DCA.
Let's say you have a chuck of money that you want to invest sooner than later. Here's the biggest question. When should you buy? When the chart for GABUX has Relative Strength Index is around 30 or below. Click here to learn about RSI. With RSI, you basically sell around 70, and buy around 30. The best chart website is StockCharts.com. The RSI is above the price chart.
Now all you need is to open an online brokerage account. Here is a great website that may have every broker available: www.findthebest.com
Good luck and I hope you are a successful investor.