Post by Beaver Fever
I know this group is totally dead now but I need some ideas beyond those offered by the parental units. I need to start earning interest on my money. What do I do?
In today's markets, interest will barely keep up with inflation. You
need to accept some risk.
The standard advice is to have four pockets, divide your contributions
between them according to a pre-chosen percentage, then rebalance back
to that percentage from time to time.
An example is to put "your age percent" into a bonds mutual fund, and
one third of the rest each into small-cap, large-cap and international
When choosing a fund, look VERY closely at the MER (money paid to the
fund managers) and decide whether it will be worth it. For large-cap
and bond funds, it probably won't be - choose the fund with the
smallest MER you can find -- probably an S&P 500 ETF or fund. For
small-cap and international, opinions vary.
Then every two years, calculate the percentages and move money around
to bring you back to the percentages you chose in the first place.
This automatically "sells high, buys low".
We are geeks. Resistance is voltage over current.