Before you consider specifics, I believe you need to seriously look at your RISK tolerance. Have you recognized that leaving your money in a MMA is risky as the ROI [return on investment] does not keep up with inflation so you are actually losing money each month?
In order to obtain 7.2% per yr. on av., some months the value of your investments may move down. You have just witnesses that rollercoaster ride. How would you feel when a statement arrives in the mail, showing you have lost 40% since the high? Would you sell locking in a loss?
You need a program that will allow you to sleep at night with a mix of different products that you allow to grow for 10-20 yrs. 'Coach Potato' recommends you not put more than 10% in any one product. Have a look at ETFs for inexpensive long term holding instruments.
Explore Dollar Cost Averaging and a mix of Mutual Funds as alternative.
Last edited by snafu : 06-02-2009 at 09:22 AM.
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