If you are planning your investments for 2011, think seriously about mutual fund companies. With these companies you get all investment options in one place. All you need to do is decide which funds to invest in and how much to invest in each. The best fund companies to work with include Fidelity, Vanguard, American Funds and T Rowe Price.

Where To Invest

It’s wise to go with the fund company’s largest money market fund, and an intermediate-term high quality bond fund. You can opt for a large diversified equity-income stock fund that will invest your money in large-company stocks and pay about a 2% dividend yield.

You must always move money from one fund to another. Always check the value of your funds to make sure you are near to equal in value. If there is a huge difference you need to move money around to close the gap. For instance, let’s consider the stock fund. It is your riskiest fund. At the same time it offers the greatest profit potential. If the stock market has a particularly good or bad year you will need to move money. By maintaining equal value in all three funds you will be able to pull money out of your stock fund after a real good year. Likewise, you will be adding money to it after a bad year.

While investing for 2011 do not bury your head in the sand. Like the past several decades the best way out to invest for 2011 and beyond is to invest and diversify with mutual funds. When you diversify, you need not rely on guess work investments. Moreover it reduces the risk of getting into big financial trouble.