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natali · 10-31-2007, 02:25 PM

Okay by husband is totally into investing and he is trying to get me into it. But I know that on a regular basis, he goes to that website: www.fool.com and gets info off of there, and he also listen to those Dave Ramsey CDs. The guy gives pretty good advice in that area. My hubby is finishing his degree in finance / business and is really trying to be an investment banker. I bought my car ($17,000) in 2005 and I had it paid off a few months ago by just making estra payments etc on it. If you listen to those dave ramsey tapes, he tells you all about it. You can go to iTunes and download it.

natali · 10-31-2007, 02:25 PM

If I were you I would go with ETFs that track the market (IVV, SPY, etc). Sure one stock can go under but the entire S&P 500 won't, and over the long term it should outperform other asset classes. You'll get some volatility along the way, sure, but since you won't need the money for a long time you can ignore it and over the course of several decades you should wind up holding a very respectable nest egg.

Just toss in some cash and forget about it.

ermak · 10-31-2007, 02:25 PM

At 28 years old, you are right. You have time to recover from downturns in the market. If you want confidence to move your money from funds that provide measly returns, simply watch CNBC, MSNBC, or other business channels. Right now the stock market is volatile and nobody really knows what to do (buy or sell). However, over the long term, nothing keeps up with inflation like stocks.

You already identified that the money market has a low interest rate. Let me make that lower. Yearly inflation is around 3%. Subtract 3% from the return you are getting and that is your real interest rate. Did it make it barely above 1%? You can't afford to miss out on investing in stocks.

At least move 60-70% of your money into equity funds...if you want to remain conservative, stick to large cap funds. They will provide stability because they are bigger, more established companies that pay out dividends. To diversify, put 5-10% in small cap and 5-10% in international. The other 10% can remain in the money market, however I don't see any reason to have it there at the age of 28. It's all up to your tolerance.

Don't miss out on the chance to have a million (or more at your savings rate) in your retirement account. Money markets won't allow that.

Ron, ChFC

10-31-2007, 02:25 PM	#11
natali Greenhorn Join Date: Jul 2006 Posts: 31 Rep Power: 6	I am chicken when it comes to investing...please help? Okay by husband is totally into investing and he is trying to get me into it. But I know that on a regular basis, he goes to that website: www.fool.com and gets info off of there, and he also listen to those Dave Ramsey CDs. The guy gives pretty good advice in that area. My hubby is finishing his degree in finance / business and is really trying to be an investment banker. I bought my car ($17,000) in 2005 and I had it paid off a few months ago by just making estra payments etc on it. If you listen to those dave ramsey tapes, he tells you all about it. You can go to iTunes and download it.

10-31-2007, 02:25 PM	#12
natali Greenhorn Join Date: Jul 2006 Posts: 31 Rep Power: 6	I am chicken when it comes to investing...please help? If I were you I would go with ETFs that track the market (IVV, SPY, etc). Sure one stock can go under but the entire S&P 500 won't, and over the long term it should outperform other asset classes. You'll get some volatility along the way, sure, but since you won't need the money for a long time you can ignore it and over the course of several decades you should wind up holding a very respectable nest egg. Just toss in some cash and forget about it.

10-31-2007, 02:25 PM	#13
ermak Greenhorn Join Date: Jul 2006 Posts: 20 Rep Power: 6	I am chicken when it comes to investing...please help? At 28 years old, you are right. You have time to recover from downturns in the market. If you want confidence to move your money from funds that provide measly returns, simply watch CNBC, MSNBC, or other business channels. Right now the stock market is volatile and nobody really knows what to do (buy or sell). However, over the long term, nothing keeps up with inflation like stocks. You already identified that the money market has a low interest rate. Let me make that lower. Yearly inflation is around 3%. Subtract 3% from the return you are getting and that is your real interest rate. Did it make it barely above 1%? You can't afford to miss out on investing in stocks. At least move 60-70% of your money into equity funds...if you want to remain conservative, stick to large cap funds. They will provide stability because they are bigger, more established companies that pay out dividends. To diversify, put 5-10% in small cap and 5-10% in international. The other 10% can remain in the money market, however I don't see any reason to have it there at the age of 28. It's all up to your tolerance. Don't miss out on the chance to have a million (or more at your savings rate) in your retirement account. Money markets won't allow that. Ron, ChFC

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