No. of Recommendations: 0
I agree with a lot of what rjm1 had to say. One minor addition. For your short term money you might consider a short term floating secured debt mutual fund. They pay app 150bp more than six month CDs, have very little fluctuation in NAV, and some allow withdrawals on a monthly basis with no withdrawal fee and no sales charge. They're a decent alternative.

Oh, yes, with regard to index funds, make sure you have a well though exit strategy. In a prolonged market downdraft you could get stuck with shrinking asset value and skyrocketing capital gains. In fact, for that matter, don't buy anything unless you have a well thought out set of criteria and a plan for selling. Don't stay too long at the dance.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement