Three Funds to Turn Investment Beginners into Retirement Winners

Just a couple of months into the New Year, it’s time for your 401k administrator to begin holding meetings about your company’s retirement options. Most of the old-hands will automatically sign up again, without giving a thought or two to determining if their funds from last year still meet their needs today. Yet, many of them—and their portfolios—are in dire need of a retread. And I’ll address the necessity of actively pursuing those changes in a column coming soon.

But today, I want to talk with never-before or new investors who may find themselves facing a pound of prospectuses without knowing where to begin their journey upon the path of successful investing.

First of all, don’t panic! Your 401k plan will generally include a selection of mutual funds (not too many offer ETFs just yet), as well as total portfolio options for investors looking to avoid picking individual funds. These offerings will probably include:

Wrap-up from World Money Show

It was a great show, and who can complain about being in Orlando in February?

My last day at the show was a good mix of interviews with fixed income and equity advisors. The fixed income folks offered a positive outlook on the U.S.--and gold--but felt investors looking for income may need to "go out on the risk scale" a little, in order to obtain a decent income stream. They also warned against:

• Chasing stocks just for the yield; instead, make sure the companies you choose are fundamentally strong
• Laddering bonds--a strategy that no longer works with such low interest rates
• Buy and hold--with continued volatility, this strategy is no longer viable

Other ideas for investment included:

• Large cap stocks, particularly in technology and finance
• Dividend-paying compaies
• Emerging market stocks, but very selectively

My interviews will be posted on http://www.moneyshow.com/ within the next couple of weeks, so make sure you login for the latest opinions and specific recommendations from some of the most-respected financial advisors in the marketplace today.

Market Strategies from the World Money Show

I had a great time catching up with lots of friends and associates today, and I was pleased with their overall positive sentiment about the U.S. economy and markets.

The investment advisors at the World Money Show are a diverse bunch with a range of opinions. I spent the afternoon quizzing a few of my favorite advisors about their take on the current market, as well as which sectors look attractive for 2012.

You may recall my recent discussion about the transition of economic and market cycles and my contention that we were nearing the changeover from early- to mid-cycle, when small caps begin to lose their luster and investors begin to find larger cap stocks more attractive.

This was the prevailing theme in almsost all of my interviews today, accompanied by pretty bullish outlooks from the majority.

Here's a snapshot of what they had to say:

1.  Europe and the U.S. are not tied to each other at the hip, with historical proof that recessions on the continent did not foster similar economic downturns in the U.S. Additionally, the improving economic indicators in the U.S., including consumer sentiment, housing, and unemployment, continue to indicate a strengthening environment on the home front.

2.  Whether investing in dividend-paying stocks, growth equities or ETFs, and although the climate is bullish, this cycle requires more than a "dart-throw" to ferret out the best investments. All agreed that judicious stock-picking would become more important in the days ahead. In other words, don't chase yield or "hot" sectors; instead, find out if the company or companies, in the case of an ETF, are fundamentally strong investments for the long haul. Always a good strategy, in my opinion.

3.  Don't give up on emerging markets. Although most are still underperforming, it may be the perfect time to indulge a small portion of your portfolio in areas that are destined to grow exponentially in the next few years due to demographic and economic trends. And while I heard very few individual stock recommendations, several advisors thought a diversified ETF would be a good start.

Overall, pretty bullish, although most agreed with me--the volatility isn't over, but the trend looks good!

This & That from the World Money Show, Orlando, FL

It's a lot warmer in Orlando than it's been in Tennessee! And the investment climate is heating up here at the World Money Show, too--the best attendance I've seen in years.

I've been interviewing financial gurus all morning for MoneyShow.com and have heard some interesting viewpoints, including:

Possible investment ideas:

• Brazil, a resource-rich country, but hot in telecom also
• India, ready to become the next China, but with many more advantages
• Batteries, for hybrid and electric vehicles; look for M&A in this arena, as well as large caps aligning themselves with up-and-comers

And places to stay away from:

• Japan, where the tsunami, nuclear plant closures and a faltering economy should make investors beware
• The U.S., due to our burgeoning debt
• Big banks which aren't as healthy as the media portrays and are doomed to repeat their mistakes

My interviews continue through today and tomorrow and will be uploaded to: eshow@moneyshow.com, in the near future.

Tune in for some timely information that may help put your investment strategy back on track!

Top 10 BIG Money-Saving Tips!

The first month of 2012 is history, and many folks are still trying to stick to their New Year’s resolutions (although maybe not as successfully as they wish!). The two on the top of most folks’ lists are pretty much the same year after year: Lose weight and save money.

I’m not an expert on the first, but I do know a little bit about saving and investing. And right now, you can’t pick up a newspaper or turn on the TV without finding some money saving tips.

The problem with most of those tips is that they often require what people might consider “sacrifice”, and therefore, become more difficult to sustain. For instance, I bet you’ve heard at least a hundred times, “Forget Starbucks’ $4 coffees and make your morning pick-me-up at home”; or “take your lunch to work, instead of eating out every day”. There’s nothing wrong with those behavioral changes, but because they are often associated with socializing with your friends, folks have a difficult time sticking to them. And, truthfully, while the savings from them do add up, there are plenty of other—and easier—changes that will put a whole lot more money in your pocket.

I’m going to give you my top ten, and I bet you haven’t even thought of some of them.

What’s all the Hoopla about Bill Gross’ Total Return ETF?

What’s all the Hoopla about Bill Gross’ Total Return ETF?

In the bond arena, when you say “Bill Gross”, it’s akin to hearing “Warren Buffett” roll off the tongues of equity investors. Gross, founder and co-chief investment officer of PIMCO, is one of the most successful fixed income money managers around the globe. His flagship mutual fund, PIMCO Total Return Fund (PTTRX), is the world’s largest mutual fund, with a mandate to invest 65% or more of its assets in fixed income.

Recently, Gross made news with the announcement that on March 1, 2012, he is launching an almost-cloned version of his mutual fund with his total return exchange-traded fund (TRXT). It won’t be exactly the same as the mutual fund, because the ETF will not invest in derivative instruments.

I think the ETF is a good idea for a few reasons:

Portfolio Protection, Step 5: Put Options

In my recent article 5 Steps to Protect Your Portfolio | InvestorPlace, the final step I discussed was utilizing put options as insurance that any unrealized gains you have don’t turn into losses.

Most investors have heard of options, but often think they are just for “rich” folks or hedge-fund managers, who employ them for speculative purposes. Certainly, sophisticated investors regularly use them as leverage to maximize their portfolio gains. But they also like to use options such as puts to nail down their gains and to mitigate losses should their stocks’ prices head in the wrong direction.

In essence, put options provide protection by betting that the underlying stock will decline. They give you the right (not the obligation) to sell the stock at a certain price at a specific future time.

There are three scenarios in which a put can help you protect your portfolio: