Where can I get 12% Average Annual Returns???

I hear this question all the time, mostly from hardened skeptics, and I am here to tell you that you absolutely CAN get a 12% average annual return on your investments, BUT you have to pick the right funds.  This does not come easy and you will need to do some research.  Even though it does not come easy, it also is not rocket science.

The answer to this question is in Mutual Funds.  Mutual Funds are funded by many different people, from many different classes with different amounts of money and you can be one of those people.  They are "mutually" funded.  There are mutual funds that you can invest in for as little as $200.  There are many types of mutual funds to invest in, but you should focus on just four of them.  Growth, growth and income, aggressive growth(small cap) and international(foreign).  You need to look for funds that have a good track record of at least 5 or 10 years or more and have long time fund management.

I want to make it clear that I do not endorse or sell any funds but here are are few to get you started in the research.  PRLAX, NEWFX, DSCVX, MRSCX, ASVIX, FLPSX, FNARX, FNMIX, PEMDX, PRMTX, PRNEX, PRSVX.  You can see by looking at these funds that they have a good long track record and have averaged at least 12% annual return.  Remember that past results to not guarantee future results, but it does give us a good track record.  When you invest in a mutual fund, invest regularly, leave it alone and watch it grow.  Remember that an investment is for 5 year or longer.  If you are going to use that money in less than 5 years, that would be considered savings.  Don't invest money that you will use in less than 5 years.

There are a lot of mutual funds out there and a lot of research to do.  Don't get overwhelmed.  Keep it simple and don't invest in too many of each of the four types.  There are plenty of books at the store as well as online  information like Morningstar.com, Sharebuilder.com Reuters.com etc. to help make investing in mutual funds and in your future more enjoyable and less scary.