"Mutual funds are the best way (to invest) because it is not necessary to select one particular stock."
-Edward Pinch, financial advisor specializing in mutual funds.
If you are like most people in this world, you want to make easy money. Mutual funds are just the way to do this. Mutual funds are a great way to invest money for retirement or other future purchases because they provide high earning rates and low risk due to diversity.
Click "investments compared" to see a graph comparing the interest rates of mutual funds with the interest rates of other investments.
Another great aspect of mutual funds is that time is on your side. This is why mutual funds are particularly useful for retirement. With the interest compounding continuously, early deposits in a mutual fund have a long term pay off.
Click "compared time of investment" to see a graph that illustrates the differance between someone who invests $2000 a year for 10 years (RED GRAPH) and someone who invests $5000 for 10 years but starts 20 years later in life (YELLOW GRAPH). No matter how many years the second investor continues to put $5000 into the 16% fund, he/she will never catch up to the first investor.