I'd like to make my savings work for itself with moderate risk. What is the best way to do it?
2006-10-19 02:32:44 · 6 answers · asked by AlongthePemi 6 in Business & Finance ➔ Investing
a mix of stock mutual funds and maybe 20% of the total in bond mutual funds....
15% foreign stocks
50% domestic stocks
20% bonds
15% cash or cash equivalents...
2006-10-19 02:41:22 · answer #1 · answered by Andy FF1,2,CrTr,4,5,6,7,8,9,10 5 · 0⤊ 0⤋
Risk is related to return. Moderate risk = moderate return. Hi risk would be commodities and small stocks. Lo risk would be a bank account. Bonds may be what you're looking for. Individual bonds are tricky. Your best bet may be a mutual fund of bonds. You'll need to do some work to figure out what's best for you. A broker would help but he'll take a commission and you'll have less to invest.
2006-10-19 09:38:26 · answer #2 · answered by fastfrank7 5 · 0⤊ 0⤋
moderate risk would probably equal a index mutual fund like one that follows the S&P 500. Or you could pick a fund that a lot of the big mutual fund companies are now offering that are basically a fund made up of other mutual funds to give you a certain distribution like 60% stock 40 % bond and rebalance as much as needed to maintain that distribution, like the Fidelity Freedom funds
2006-10-19 09:41:29 · answer #3 · answered by Ping898 3 · 0⤊ 0⤋
Buy the S&P500 index fund. Even though this may not be the best time to do so (based on current valuation), if you dollar cost average (put money in every month) it, you could turn out OK. The index basically tracks the wealth of the largest companies in America. If you believe the America will continue to grow wealthier over time, then this may be a good bet. Vanguard has a low cost index fund (VFINX) that may be worth considering.
2006-10-19 18:58:44 · answer #4 · answered by Jeff L 2 · 0⤊ 0⤋
If keep it in bank you will not beat inflation after taxes & will lose purchasing power. RRE and SNH are solid Real Estate Investment trusts (1st is a fund) that trade as stocks. Good income with potential growth. Don't treat market like it is either make a little or lose it all. Does not work that way. Don't defeat yourself with aimless fears. Can invest without gambling. vegas_iwish@yahoo.com
2006-10-19 17:00:49 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋
The best and safest way to go is a Certificate of Deposit! With a CD, at least you know are making money instead of losing it!
2006-10-19 11:58:26 · answer #6 · answered by lamar36116 2 · 0⤊ 0⤋