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June 28, 2012 -

In This Issue:

The Second Rule of Successful Mutual Fund Investing
Courtesy of the Mutual Fund Informer

If you learn anything from a study of the history of the markets, it should be this: over time, stocks outperform all other assets. That's why you should put the bulk of your investment assets into stocks or stock mutual funds. Sure, there are risks to investing in stocks, but mutual funds inherently address many of those risk factors. Equity funds own dozens or hundreds of stocks, so they automatically protect you from the risks that arise from overloading in a single stock.

Stock mutual funds should be an essential part of every investor's portfolio. Although there are times when it is appropriate to add bonds or other asset classes into the mix, stocks will almost always make up the dominant portion of most investors' accounts. No other asset class — precious metals, real estate, bonds, commodities — can match the long-term returns offered by the stock market.

The key here is the phrase "long-term returns," which we define as five years or longer. Even people who are retiring at age 65 need to be aware of the need for their portfolio to grow and support them for a decade or two (or even longer!).

The biggest risk of avoiding equities in your investing accounts is that you will likely lose purchasing power because of inflation. When the time comes to begin harvesting your investing gains, you'll find that your money won't go quite as far as you hoped. Investing in the stock market is the only way that average individual investors can keep pace with inflation and grow their nest egg.

For this reason, each month, the Mutual Fund Informer analysts and editors present profiles of high-quality equity mutual funds with superior track records — the kinds of mutual funds that provide the best opportunities for investors to meet (or even beat) the overall market over the long term. We'll help you find the best funds for your 401(k) or IRA retirement plans, as well as help you reach other goals.

Download a free sample issue of the Mutual Fund Informer and subscribe at a special Charter Subscription Rate today!

Next time, we'll review rule #3: "Invest in your funds regularly, through all market ups and downs."

Considering Dividends in Toolkit 6

Although BetterInvesting's methods focus on company growth and the resulting share price appreciation, dividends can contribute to a portfolio's total return. Toolkit 6 can evaluate the history, safety, growth, and prospects of a company's dividends.

From the Toolkit 6 Visual Analysis screen, select Dividends in the Additional Graph Data to plot annual dividends on the graph. Are dividends steady or growing?

In Section 3, evaluate the percentage payout to determine how much of a company's earnings are paid as dividends to shareholders. If dividends are excessive, the company may not have enough to reinvest in its growth or be able to raise dividends. Payout ratios vary by industry, so always compare a stock to its peers. ... 


Free Webinar for Dividend Investors

Speaking of dividends, Doug Gerlach's next Toolkit 6 User Group webinar will address that very topic, "Diving Into Dividends in Toolkit 6." The webinar is scheduled for Tuesday, July 3, 2012, at 9:00 PM ET.

The growth stock investing approach used in the Toolkit 6 software program focuses on capital appreciation and low P/E valuations as the keys to successful stock investing. But dividends can add to your total returns, and many investors appreciate the additional safety or income provided by dividend yield. Learn about concepts such as yield, the payout ratio, and the importance of not chasing dividends in your stock portfolio.

In the webinar, Doug will demonstrate such features as how to adjust the payout ratio, how to identify the growth of dividends, and how to consider the yield function of a stock's projected total return.

Register or learn more today!

June 28, 2012


We're ICLUBcentral Inc.
We develop high-quality software products and web services for individual fundamental investors, and powerful accounting tools used by the majority of US investment clubs.

711 W. 13 Mile Rd
Madison Heights, MI 48071

ICLUB Links:
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Events Calendar:
First Tuesday of each Month: Toolkit 6 User Group led by Doug Gerlach, ICLUBcentral Inc.

Third Tuesday of each Month: New Investment Club Orientation led by Doug Gerlach, ICLUBcentral Inc.

Doug Gerlach will also be speaking at the following events:

June 5, 2012: Toolkit 6 User Group Webinar; Live Stock Study using Toolkit 6
Doug Gerlach, Speaker

June 19, 2012: Investment Club Operations Webinar; Handling Investment Club Member Withdrawals
Doug Gerlach, Speaker

July 3, 2012: Toolkit 6 User Group Webinar; Diving Into Dividends in Toolkit 6
Doug Gerlach, Speaker

July 12, 2012: Retail Investors Conferences; Doug Gerlach, Speaker

July 17, 2012: Investment Club Operations Webinar; Passing the Torch: Preparing Your Club's Next Treasurers
Doug Gerlach, Speaker

Aug. 2, 2012: Retail Investors Conferences; Doug Gerlach, Speaker

Aug. 7, 2012: Toolkit 6 User Group Webinar; Margins of Safety: Analyzing Profitability in Toolkit 6
Doug Gerlach, Speaker

Aug. 21, 2012: Investment Club Operations Webinar; Superior Stock Selection for Investment Clubs
Doug Gerlach, Speaker

Submit Your Event!

Like 7-Eleven, we're not always doing business, but we're always open — go to the ICLUB Store and outfit yourself with the simple, yet powerful tools and services that smart investors have been using to grow their portfolios since 1989.

Got a Problem?
Support is here to help. You can reach them M-F, 9:30 AM-6:00 PM at 877-33-ICLUB (877-334-2582), or use the e-mail web form at ICLUB Support.

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