Quote:
Originally Posted by UCFKnight85
I'm 25 years old, have a good job with a good salary, am DEBT FREE, have no wife or kids, and am currently renting an apartment. I'm honestly in no rush to buy a house until I'm married as my job may or may not be moving me in the near future.
I have roughly $40,000 that I'm looking to make moves with and another $16,000 that is sitting in a poorly performing BOA CD.
My problem is that I'm having trouble finding a portoflio that makes sense, is diverse, and combines acceptable risk with conservative savings. I'm looking for some qualified opinions of what type of mix would be best- i.e. an online bank CD? Money market? Mutual funds vs. stocks vs. bonds?
Any advice is appreciated......I'm having trouble moving forward on this.
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First, don't be in too big a hurry to make any move; Earning a little in BOA is better than losing a lot by making a quick, bad move. Read & learn enough first until you feel knowledgeable & confident in what you should do.
That said, modern financial advice says most portfolios should be diversified by having a combination of cash, bonds and stocks, & the amounts of each varies depending on your age and your situation. Having some in each of those three asset classes gives you great diversification; i.e. If one's failing, the others might be rising; i.e. You're not putting all your eggs in one basket, which could drop & break all your eggs!
For a young person like you with a lot of working years ahead & willing to handle a little risk, you might have 80-90% in stocks, 5-10% bonds & 5-10% cash. A more conservative portfolio
The definitions, to me:
Cash = Cash, savings account, checking account and/ or money market. You can have some in each if you want.
Bonds = Bond index mutual funds, such as Vanguard's fund symbol VBISX
Stocks = Stock index mutual funds, such as Vanguard's fund symbol VFINX