Energy FundAre you Properly Investing for Your Future?

Are you actively investing for your retirement or are you putting it off until the time is right? I want you to know that the only time that is better to invest than the present is the past. If you’re not currently investing your hard earned income, you need to start today and not wait until tomorrow.

I recently rolled over one of my IRA’s from a past company that I worked at into one of my active IRA’s which I can personally invest the money myself instead of having someone else manage my money. Don’t get me wrong, there is nothing wrong with having someone manage your investments, but when I calculated the amount of money I would make each month when I retired using their solution, I quickly decided that it was not the best solution for me so I transfered my funds where I can better manage my account.

Like many people these day’s I don’t like to invest directly into one company stock. While the rewards can be great, so can the risk. I’m sure you’ve heard the term ‘don’t put all your eggs in one basket’. This is why I like mutual funds. I can pick a decent fund which allows me to invest in many like companies and limit my risk.

Until now, I haven’t purchased any funds specific to energy. I did a little research and quickly found a fund that I liked. Currently I’ve invested in several Vanguard funds with great success, so I decided to look there first. To no surprise I discovered VANGUARD ENERGY FUND (VGENX) which holds stocks in over 130 energy companies, only requires $3000 for your initial investment, and has averaged 12.8% return each year.


Why Invest Now?

Let’s say that you make the initial $3000 investment in the Vanguard Energy Fund and earn the average rate of 12.8% and reinvest your earnings back into the fund. Because of compounding, your initial investment should be worth around $10,000 in about 10 years. If you wait a few years before you invest, you’re not able to take advantage of the compounding that your investment can achieve. The difference between investing $3000 at the age of 20 or the age of 30 can result in over half a million dollars of interest by the time you retire.

Start building your future today!


I used this Vanguard Energy Fund in my example because I did recently invest in this particular fund, but I am not endorsing or recommending it in any way. For those interested in investing in this or any other Energy Fund, please make sure you do your research and make sure the investment is right for you. Below is a basic summery on on this particular fund.


Vanguard Energy Fund Summery:

VANGUARD ENERGY FUND (VGENX) is actively managed fund offers investors low-cost exposure to U.S. and non-U.S. companies that are engaged in various aspects of the energy business. Unlike similar funds, which may invest in companies that explore for and distribute additional commodities, this fund focuses purely on energy, such as oil, natural gas, and coal. The fund is narrow in scope, investing solely within the energy sector. In addition, the fund may be invested up to 100% in foreign securities, which can be more volatile than domestic holdings. Returns may vary widely from year-to-year, so this fund may be considered complementary to an already diversified portfolio with a long-term time horizon

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