No. of Recommendations: 1
Fooldom teaches to expect an 11% return over time from an S&P 500 index fund. That is a long term average. In the '90s 20 to 30% returns for the index became common, but that seems unlikely for the next year or so. So the best you can do is make the investment and hope for some good years to help you reach your goals.

You probably can do better than average if you are a good stock picker. That would require spotting the investments likely to do well, and then learning when to get out (usually the hard part). Playing high fliers can cause some losses, much worse than you'll get in the S&P Index.

So I would invest most of the funds in an S&P Index fund and hope for the best. You could put a portion into some more promising investments and see how you do. Perhaps you will have the skills to do much better, but don't risk all your funds in this way until you have some successes under your belt.

Best of luck to you.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.