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Investing Basics: 529 Savings Plans

One thing you can expect when you’re expecting a baby is to pay a lot for diapers—you might pay about $600 by your child’s first birthday. But the cost of diapers is child’s play compared to the costs that could come later when paying for college. To encourage people to save for these...
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Investing Basics: Tax Benefits to Encourage Saving

To encourage people to save, federal and state governments offer special tax treatment for savings plans for specific goals, such as retirement and education. By increasing the benefit that savers receive in the short term, the government nudges savers to take a positive action that...
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Investing Basics: The Benefits of Mutual Funds

We’ve reached the halfway point in this series, and we’ve covered a lot of ground: the benefits of investing, how to think about risk, different types of investments, why diversification is important, and dollar-cost averaging. This month’s installment brings all these topics together...
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Working to Ensure Funds Can Maintain Vital Services

Key personnel of mutual fund sponsors and service providers should be deemed “essential workers” and thus should be permitted to report to work to maintain security and services for fund investors. Two key developments over the weekend offered some hope that state governors will hear...
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During COVID-19 Crisis, Fund Company Staff Are Essential

As governments consider extending orders to “shelter in place,” they must include staff of fund companies among the “essential” workers who qualify for an exemption. Fund company staff are very much part of the country’s critical infrastructure, and they must be able to offer their...
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Investing Basics: Dollar-Cost Averaging

Emotions are the enemy of successful investing. For long-term investors, dollar-cost averaging is a smart way to take the emotion out of investing and to eliminate the difficulty and uncertainty of trying to time the market.