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Author: IllustratedMan Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 103  
Subject: Re: Portfolio advice book Date: 6/7/2005 12:37 PM
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Should the rest be in the market since I don't have any big expenses that I plan on using?

I think you are the only one who can answer this, as one would have to know your age, time horizon, risk tolerance, financial situation, personal situation, and many other details besides.

Should I put some additional in laddered CDs or bonds.

See above. I don't think anybody 'needs' these things unless they need the income or have goals for short-term time horizons.

What's an appropriate balance between 'safe' money and investment money.

Again, I think this is entirely due to your personal circumstances. Much of it would depend on a) the size of your portfolio and b) the dependability of your regular income (usually from a job).

I am not a fan of making this overly complicated, if that means anything. The traditional way to approach this is to divide your objectives by time horizon and invest appropriately for each. So, for example, if you wanted to buy a car in a year then you'd want your car money in somewhere very safe, ala CDs. If you want to invest for retirement and know what you are doing and have a long time horizon, then you ought to consider investing in the stock market. If you have debts, you should pay them off. If you don't own a house, you should try to do so. If you aren't funding a Roth IRA and can do so, then do so immediately. Simple stuff, for the most part.


I like Jane Bryant Quinn's "Making the Most of Your Money" as a general personal finance book myself, even if it is now dated in places.
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