[cookiemonster]

My wife and I are dealing with a similar question. I hope you don't mind me piggy-backing here...

Our investment time-horizon is what I'd call medium term (10-15 years) on this money. We put a bunch into the market last fall, which anyone who can read a graph will tell you, looks pretty dumb right now. I keep telling myself it will come back in time, but ouch. Anyway... yeah, what to do?

The initial plan, last fall, was to invest our money mostly in stock funds (some bonds), with 2/3 of it going into index funds and 1/3 going into managed funds. The 2/3 is already in, leaving the 1/3 (waiting until '08 was something a Smith Barney guy advised us to do b/c of some tax implications wrt managed funds). I have a preference for the index funds over managed funds, since I instinctually hate load fees, so I'm reconsidering that. I think the 70/30 domestic/international split is fine (or is it 80/20? Bah).

The main thing we're trying to figure out now is whether to put the money in now (now = before we leave on vacation 3/22) or wait a bit. My concern is that the market may not be anywhere near bottom. My other concern is that... it is!

-Arrian

[Jueqelyl]

Your time horizon determines the amount of risk you should take. A 2-3 year horizon dictates that you take almost no risk. A simple money market may do you well. Look for the lowest expense ratio. Vanguard probably has a money market fund with a low expense ratio.

Edit: Here's a suitable fund from Vanguard.

https://personal.vanguard.com/us/Fun...FundIntExt=INT

[traiffhetl]

Patroklos,

Remember, of course, that DanS is embracing his evilness. BEWARE!

-Arrian

[Finkevannon]

Originally posted by Patroklos
Do you mean that an investment of that length simply doesn't have much risk, or that they do and I shoudl avoid it? I mean that an investment of that length -- with a particular goal in sight -- shouldn't have much risk. Your primary goal is to buy a house. Gaining on your investment is much less important than maintaining the $10,000. If you lose a part of the $10,000, then there's no house.

[Quvwcxqx]

The jives with everything I've ever heard, Patroklos. If you have a short time horizon, you go low risk. Otherwise it can really blow up in your face.

If you're investing long-term, you can wait out a downturn and not sweat it too much.

-Arrian

[DoctorTentonyya]

Plus when you do buy a house you usually spend a lot of money in addition to the house purchase. So you should have some extra cash ready.

[krek-sikUp]

Yeh, I have an opinion. Don't listen to the guy who's pushing managed funds with loads.

Go as much indexed as you can. Sometimes suitable international index funds are hard to find, though. What are the expense ratios on those funds that you listed?

[BronUVT]

Originally posted by DanS
Yeh, I have an opinion. Don't listen to the guy who's pushing managed funds with loads.

Go as much indexed as you can. Sometimes suitable international index funds are hard to find, though. What are the expense ratios on those funds that you listed? That is my thought too.

Expense ratios...

0.85% for Davis NY Venture
1.66% for ING Foreign
0.82% for Nuveen CT Bond

Here are the index funds that we are already in:

I-shares 500 Index (IVV)
Vanguard EuroPacific Index (VEA)
10% to I-shares 1-3yr Treasury Bond (SHY)

-Arrian

[redDoodia]

Invest in me!!

[mr.videomen]

mining should do juuust fine

[c6vkuNRg]

By the way, I sold my IVV 2% from its peak last year. Even though I stink at timing the market, I thought myself fortunate to exit at just the right time. That said, it would have been fine if I had stayed in IVV. Over the long term, it will pay reasonable returns.

Regarding your 10 to 15-year time horizon, it's tricky. Keep in mind that stocks can decline or go roughly sideways for 2 or 3 decades at a time. A 10 to 15-year time horizon dictates that you keep much more of your portfolio in income earning accounts, such that you continue to earn reasonable returns while the stock market goes sideways or down.

[saopinax]

well, a few years back I put 10 K (that was their minimum) in a Longleaf mutual fund and they've done me quite good.

[Beedcardabeme]

What kind of education do you have? Education is a great investment

[prmwsinfo]

I have an absolute guaranteed can't lose investment going. Paypal me the $10k.

[Evsltkzl]

[khjhkfggt]

Originally posted by One_more_turn
Arrian, you better fire your advisors immediately because they showed their dishonesty by steering you toward mediocre performing load funds. Not hard, considering we're not paying for the advice. It was a free consult @ Smith Barney.

Anyway, I'm glad everyone agrees with my gut reaction to load fees. They smelled like bullshit to me. Done and done, none of that.

...

DanS,

Thanks for the advice re: time-horizon. Obviously the money that's already in the three funds I listed will stay, as everything is down. I'll wait that out. Maybe 10-15 years becomes 15-20. That's fine. The basic purpose is to grow the money for two possibilities: money for child-related expenses or (if no child) possible vacation home or other fun stuff.

So the question is what to do with the rest of the money. Right now it's sitting in an ING savings account earning bupkis. Well, not bupkis, but not much. CD rates appear pretty bad.

Nice timing wrt IVV

-Arrian

[onlyfun_biziness]

Originally posted by Saras
What kind of education do you have? Education is a great investment requires money and time.