momopi_IHB
New member
Since most of us would agree that now is not a good time to invest in RE, how many of you are putting $ into stocks and funds instead of cash position (CD, money market) ? Which stocks or mutual funds did you choose and why?
Stocks & Funds (non-cash position) thread
- Thread starter momopi_IHB
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irvine123_IHB
New member
Momopi,
Diversification, and continued investments ( meaning don't try to time the market buy or sell) are time-proven ways of creating a good return. You probably already heard all the following from someone at some point, but it works:
a. make sure you have a 6 to 12 month of emergency fund that you can easily tap into. For this fund, I will just put in a money market fund like fidelity california AMT free money market fund", which is generating a 3.5% return withOUT fed and state income tax.
b. For additional savings (after tax saving or before tax ie 401K), you should diversify based on your age...For someone around 35, I will suggest:
50% large cap growth
15 % mid cap growth
10% small cap value, i.e. T. Rowe Price small cap
15% international , i.e. Fidelity Diversified international ( closed to new investor)
10% emerging markets, ie. T.Rowe Price emerging markets
This is a relatively aggressive diversification. You can turn down the aggresiveness by less international and emerging markets. Also, small caps has been doing really really well ( 20% / yr), it might be time for a plause.
c. lastly, you need to rebalace one or twice a year to make sure the diversification fits you need.
Check out the Money Mag"s top 70 mutual funds in every issue, they list some of the better funds out there. Also, I will only purchase funds that are rated a 4 star min by "morningstars"
Diversification, and continued investments ( meaning don't try to time the market buy or sell) are time-proven ways of creating a good return. You probably already heard all the following from someone at some point, but it works:
a. make sure you have a 6 to 12 month of emergency fund that you can easily tap into. For this fund, I will just put in a money market fund like fidelity california AMT free money market fund", which is generating a 3.5% return withOUT fed and state income tax.
b. For additional savings (after tax saving or before tax ie 401K), you should diversify based on your age...For someone around 35, I will suggest:
50% large cap growth
15 % mid cap growth
10% small cap value, i.e. T. Rowe Price small cap
15% international , i.e. Fidelity Diversified international ( closed to new investor)
10% emerging markets, ie. T.Rowe Price emerging markets
This is a relatively aggressive diversification. You can turn down the aggresiveness by less international and emerging markets. Also, small caps has been doing really really well ( 20% / yr), it might be time for a plause.
c. lastly, you need to rebalace one or twice a year to make sure the diversification fits you need.
Check out the Money Mag"s top 70 mutual funds in every issue, they list some of the better funds out there. Also, I will only purchase funds that are rated a 4 star min by "morningstars"
graphrix_IHB
New member
I also recommend Kiplingers for checking out funds. One I like and they love is the CGM Focus fund. Irvine123 makes a good point in staying diversified. I on the other hand move my funds around as to how and what sector will perform. For most people it is best not to move around and try to time the market but I am an ubernerd by following the market like I do. For example a year ago I was very aggressive with small cap funds and emerging markets. So I researched what performed well during the last housing bust and shifted to the large cap funds and some went into bond funds. Also recently I shifted a little more to bonds. I wouldn't say that I am timing the market but investing as to how aggressive or at the moment how moderate I feel.
To each his/her own. Read, study and don't listen to analysts. About the best thing Cramer has ever said is do your homework.
Of course that is my savings money and I do trade the markets as well. Which is probably a whole other thread to begin talking about.
To each his/her own. Read, study and don't listen to analysts. About the best thing Cramer has ever said is do your homework.
Of course that is my savings money and I do trade the markets as well. Which is probably a whole other thread to begin talking about.
bishie_IHB
New member
I have all of my funds at Vanguard or Fidelity since they tend to have low fees. I'm at about 35% cash 65% equities. Of the equities tier about 40% domestic 60% international. Needless to say my stock portfolio has taken a fairly substantial hit in the past 2 weeks.