My investment Plan. Please take a look?

Question

Please any advice or suggestions would be much appreciated.
1) 70,000 money market
2) 170,000 S&P 500 index fund
3) 30,000 international stock market

My plan is to have a emergency reserve of 70,000 in money market. If a hot investment comes up, I could always take money out of money market and invest as I choose.

Second is too have a majority of my money 170,000 in a moderate risk S&P 500 index fund for at least 5 years. Im thinking of just leaving this money in there and forgetting about it.
Third is to put about 30,000 in a high risk stock such as international. But I don't know where to invest. Did research but still unsure. China has been doing really well but some say they'll crash others say they'll keep rising. So confusing. Since stock market tends to do better long term, I plan to leave it for at least 7 years.
My plans decent?? Please ANY advice, comments or suggestions would really help.
Im 23 & and want max growth without being to risky. 9-14% would be good

Answer 1

Pretty good, but I would recommend that you have at least ten percent of your assets in something with hard value. Personally, I think gold and silver are going to be going up, especially if there is a recession. At this time it seems we are heading for/are in a recession, IE the mortgage crisis and the credit crunch. The dollar is losing its value and gold is a great way to protect your assets from inflation. Although you don't need to buy physical gold or silver. You could buy gold and silver certificates or electronic gold currency, or Gold exchange-traded funds. Just remember it's never a bad time to diversify your portfolio. Gold and silver will double in value by the end of 2008. Get in while its still relatively cheap.

Answer 2

Hi, I've been studying the Markets (all) for the past 10 years and I am a Commodities guy and also someone who can actually read charts. The Commodities are not really that risky IF you know what you are doing and they are 10 times more profitable than anything you mentioned.

Your money market plan sounds good.

Your S&P 500 Index plan not so much especially the part about leaving and forgetting. The U.S. Stock Market has maybe 2 years left before a BIG down turn starts.

Putting your money in the hands of a broker or a money manager just is not a real good idea. They are paid to accrue commisions and M M want to keep your money in their portfolios as long as they can and the info they have spent many years learning is the information that only limits and contains them to making you 10 to 15% if they are good at what they learned.

I can help you with more info if you like even if you don't lie the Commodities, though there are currently a handful of C Markets that would make you a million in less than one year( 6 to 9 months ).

Thanks,

llmangrum

Answer 3

If this is in dollars, then at 23, you have more to work with than some people who are retiring.

I think you have an opportunity for taking more risk than you are, but you'll have to search your own heart. If it were me, I'd put triple the amount into Brazil, China, or other emerging markets, and 100k only on the S&P index. If you go broke at 30, you can still start over. If you end up buying the next Intel or Microsoft, maybe you can retire at 30!
With a long time horizon, solar energy could be a good investment, the oil has to run out, sometime. But do lots of research, there are a lot of junk companies out there whose only value is in the fad. Look for the ones that have good fundamentals, and are well managed.

Answer 4

Read "portfolio management" section of the following website:

http://www.preparedinvestor.com

Answer 5

seems a little conservative with 70k in money market, your return expectation also seems high.

Answer 6

good choice