CD,I understand your wife's point of view, and that large of an allocation to rule breaker securities would not be my choice personally since long term appreciation of securities is a much surer bet than higher risk ones which tend to be rule breakers. By investing a larger portion in Rule MAKERS you may find it easier to explain/justify since your wife is worried about losing money. I suppose you have read about Warren Buffet and are familiar with his strategy of buying Dow Stocks while they are temporarily out of favor and then reaping huge returns by holding on to them for many years? This strategy is very effective but difficult in the fact that shortsightedness, euphoria and fear of the market tend to keep one from following this model. As far as saving for a house. I live near Seattle and currently own several. What I find nice about Fixed money market accounts such as the one offered by TIAA-CREF is that my money is not tied up like in a Certificate of Deposit and yet it earns anwhere from 5.5%-6.30%. This comes in really handy when one is not sure when the 'perfect opportunity' for buying or building will arrise. I am only familiar with Vangards index funds but Creft also has very competitive maintanence fees as well. You, can also write checks from this type of fixed account for no extra charge so it makes this investment very liquid for purposes of saving for a house or car or family emergency.I am 26 and married (wife 31) we have three children. Combined income for us is about 75K. We have about 250k in real estate and about 6K in stocks for long term holding (>10yrs). This year we started maxing out a single IRA. In a discount brokerage I also buy individual stocks under the protection of a 2nd IRA.
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