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Congratulations MP 63 Fund shareholders. The recent sharp sell-off in the wake of the September 11 attacks has put pressure on a lot of mutual funds to meet redemption demands. But our fund has not experienced this problem, and we just wanted to take the time to congratulate our shareholders on showing their good judgment by not panicking. By contimuing to purchase, they've shown what savvy investors they really are! | ||||||||||||||||||||||||||
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An Investor-Friendly No-Load, Low-Expense, Tax-Efficient Mutual Fund The MP 63 Fund is entirely without loads and shareholders won't be charged for fund advertising. As assets grow, the intention is to pass along the savings from economies of scale. You can set up a Roth IRA investing in the fund. However, if you want to convert your traditional IRA to a Roth, there are two distinct things to do: (1) transfer the accumulated assets and (2) convert the account to a Roth IRA. You have a choice of which you do first. The MP 63 Fund will be very tax-efficient to the individual investor. Because we aim for zero turnover, there will be few capital gains distributions. As with DRIPs, of course, dividends must be reported as income even if they are reinvested. Unless otherwise indicated, individuals will have all dividends reinvested. The New Account Application allows for investments by individual or joint owners, uniform transfers/gifts to minors, and corporate trust or other fiduciary accounts. Other forms allow you to invest in the MP 63 Fund through an IRA, whether it's a traditional IRA or a Roth IRA, and you will be able to roll over (or transfer) funds from another retirement account. We've been asked about transfers from 401(k) and 403(b) plans, as well as conversions from traditional IRAs to Roth IRAs. Keep in mind that most companies will only let you roll over money from their 401(k) or other retirement plans after you've left their employment. So while the MP 63 Fund will accept such transfers, your retirement plan must allow them.
Since the short-term trend of the stock market is so unpredictable, the more balanced, unemotional approach of dollar-cost averaging is better suited to your long-term interests as well as the general good of the fund. More than 20% of our fund investors are already dollar-cost averaging--having selected the "automatic deductions from a bank account" option. We would encourage you to adopt this investing strategy as well. This discipline will prevent you from sending investments as the market reaches new highs and withholding investments (or worse still, redeeming shares) when the market crashes. In addition, your mutual fund will have funds available to buy shares when the market is down. As an incentive to sign up for automatic investments, we're offering a special FREE subscription to Direct Investing to those who take advantage of the automatic investment option. (See the offer at the top of this web page.) Direct Investing is published twice a month and costs $150. That's our twice-monthly newsletter that is completely devoted to investing in DRIPs. DI offers guidance on undervalued stocks and discusses strategies for maximizing the benefits of DRIP investing, as well as keeping readers up-to-date on the latest changes to these plans. It will also help you weather the storms that will inevitably arise in the market. Because the MP 63 Fund is a public mutual fund, investors do not have to be subscribers or members of a subscriber's family, so by all means, feel free to encourage friends to invest in the fund. And if you invest through a 401(k) (or similar) plan at work, you can encourage the administrator of such retirement plans to offer the MP 63 Fund as a choice. The Moneypaper Advisors are among the funds largest shareholders, and we share your desire to make the MP 63 Fund produce excellent results for its patient long-term shareholders. Let us hear from you. While we may not be able to answer every letter or e-mail, we're paying attention. And, please don't consider this fund for your short-term investing objectives. --Vita Nelson
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2001 MP
63 Fund, Inc.
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