Transamerica 401(k) Plan Conversion Log In
HOW DO I GET STARTED?
First.....request and review a copy of the prospectus from all of the funds that
you intend to invest in. The prospectus of each fund contains the detailed
information relevant to that specific fund (i.e.: fund objective, strategy, minimum
investments, etc..) Most funds have toll free numbers or websites. Once you've read
the prospectuses fill out the appropriate application an forward a check to the mutual
fund company. If you have any questions, speak to your advisor or call the fund
company.
DO I NEED ALOT OF MONEY TO INVEST IN
MUTUAL FUNDS?
Most of the time.....no. Mutual funds are generally an affordable way
to invest. Although the actual amount varies from fund company to fund
company.......there are a large number of funds that will allow you to open an account
with as little as $1,000. Some funds also offer automatic investment plans that
allow you to invest for as little as $25 per month in lieu of the initial minimum
deposit. Some investors prefer this option because it helps them get into the habit
of investing on a regular basis.
HOW EASY IS IT TO GET MY MONEY OUT?
Assuming it is not a 401(k), SEP, IRA or some other type of tax deferred
account....it is very easy. All you have to do is phone or write the fund and
request that they sell your shares. Some funds even allow you to write a
check. You may even set up a systematic withdrawal plan that lets you redeem a set
amount at an interval of your choice. This may be very convenient for those with
children in college or retired individuals.
HOW I WILL I KNOW HOW MY MUTUAL FUND IS
DOING
One way is to call the fund company or visit their website. Another way is to
look in the financial section of your daily newspaper. The newspaper first lists by
fund company and then by individual fund. Also, if you have access to an online
financial stock quote service, you may look up the fund under it's "ticker"
symbol (similar to a stock). You may obtain this symbol from the mutual fund
company.
WHEN IS THE RIGHT TIME TO INVEST?
Depending on your needs, anytime may be the right time. Markets go up &
down, so it makes little sense to try to "time" them. What makes sense is
to start a plan of regular investing to take advantage of an approach called 'dollar cost
averaging"
WHAT IS DOLLAR COST AVERAGING?
Every investor dreams of beating the stock market. Unfortunately, knowing
when to buy and when to sell is no easy feat. Dollar cost averaging takes away the
guesswork of trying to time the market. You invest a fixed amount of money at
regular intervals....regardless of the level of the market. By doing so, you should
tend to buy fewer shares when prices are high and more when they are low. You don;t
need to perfect timing to take advantage of the stock market's growth potential....you
just need time.
Dollar cost averaging is a long term investment strategy that works to smooth out peaks
and valleys associated with the stock market. Instead of investing your money all at
t once....you are afforded the opportunity to buy fewer shares when the prices are high
and more shares when the prices are low. Historically, the stock market has always
gone up over time...so......the strategy of dollar cost averaging works best for the long
term investor.
Dollar cost averaging doesn't guarantee profits or prevent losses in a declining market.
Instead, it is a simple and effective strategy based on discipline and consistency.
The key is to contribute systematically and stick with your plan.
Contributions should continue regardless of whether prices are up or down. These
continuous contributions may help to reduce the overall impact of market fluctuations on
your investment dollars.
