This week's answers come from:

Lou Stanasolovich

Louis P. Stanasolovich, CFP is Founder, CEO, and President of Legend Financial Advisors, Inc. (Legend), a fee-only financial advisory firm with its headquarters located in Pittsburgh, Pennsylvania.  Legend provides Wealth Advisory Services, including Comprehensive Financial Planning and Investment Management, to affluent and wealthy individuals as well as business entities.  Mr. Stanasolovich has been selected by Worth Magazine as one of “The 250 Best Financial Advisors in America” five successive times, by Medical Economics as one of “The 150 Best Financial Advisors in America for Doctors” three consecutive times and most recently by Mutual Funds magazine as one of “The 100 Great Financial Planners in America” in its October, 2001 issue.  His investment process has been profiled in Barron’s, Business Week, Investment Advisor, Investment News, Morningstar Investor, USA Today, Worth, and on the Internet publication TheStreet.com.  He can be reached via e-mail at legend@legend-financial.com, via the website - www.legend-financial.com, or at (888) 236-5960.

How do I research a fund manager?

Can I earn a million dollars with a modest investment?

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How do I research a fund manager?

from Doug

Q: Are there any resources for identifying 1) who a particular fund manager is and 2) what their background or pedigree might be?  This pertains particularly to socially-responsible funds.

A: The best way to obtain information on the portfolio manager is to call the mutual fund itself. They can usually provide some background information including a biography. Morningstar can also offer some information, although it is brief.

Can I earn a million dollars with a modest investment?

from Heidi

Q: I am a 19 year old college student. I have been told that if I invest about $2,500 in a mutual fund at this age and let it sit for about 40 years until I retire, I could have almost a million dollars?

I am confused and I have no clue how any of this works. But I am interested in knowing if this is at all true.

A: A million dollars is a bit optimistic but $500,000 might be possible. Unfortunately forty years from now even $500,000 won't be worth as much. It may approximate $2,500,000 in today's dollars by comparison.

However, you are onto an important concept. It is called investing early. I strongly encourage young individuals to save as much as possible early in their lives. Those few dollars saved early can literally mean millions of dollars later in life and possibly early retirement. I would suggest investing in a good solid long term growth funs such as the Muhlenkamp fund, Tweedy Browne Global, and/or First Eagle Sogen Global.

Important Disclaimer

Investing in equities involves a serious principal risk, and no assurance can be given that the techniques described here will be successful. Returns vary and you may have a gain or loss when you sell your shares. Past performance is no guarantee of future results. Index returns shown are historical and include the change in share price, reinvestment of dividends, and capital gains. Indexes are unmanaged and do not reflect the impact of transaction costs. Transaction costs would have reduced the total returns.

International investments, especially those in emerging markets, entail greater risks (as well as greater potential rewards) than U.S. investing. These risks include political and economic uncertainties of foreign countries, as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less-established markets and economies.

Lastly, the questions and responses set forth here are for general informational purposes only and are not intended to substitute for performing your own independent research or contacting your financial or legal professional before making any investment decisions. We make no guarantees as to the performance of any investment strategy you choose and are not responsible for any losses you might incur.