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Posted by ps56k on February 17, 2010, 6:02 pm
>
>
>>What would be the best way to invest,
>>with max safety of principle in mind,
>>along with max growth or divs...
>
> You realize that max safety is in direct conflict with max growth or divs?
>
>>ie - what kind of mutual fund from Fidelity/Vanguard
>>would be appropriate - and all at once, or dollar avg...
>
> It depends. How long are you investing for? What other investments do
> you
> have? Do you have an emergency fund? What kind of risk are you willing
> to take
> for what kinds of rewards? I'll trot out my standard advice to go read
> "Investing for Dummies".
>
> Dollar cost averaging is a means of minimizing emotional pain at a cost of
> reduced returns. The assumption is that the stock market has a long term
> up
> trend with lots of unpredictable ups and downs along the way. If that's
> true,
> the way to maximize returns is to invest everything immediately.
>
> But that runs the emotional risk of investing just before one of those
> unpredictable downs. Ouch. DCA gives you two emotional crutches. If the
> market goes up as you are making the investment, you can tell yourself
> "I'm
> making money". If it goes down, you can tell yourself "I'm buying more".
>
> Nothing wrong with that, much of good investing is managing your emotions.
> But
> mathematically, the best thing to do with a lump sum is invest it all
> immediately.
>
> -- Doug
>
sorry - forgot about the 20 questions....
This is special gravy money - short term -
let's say for college in the next couple of years.
All our other portfolio investments are spread around in various funds
that run the entire spectrum.... risk vs reward
domestic, intl, emerging, growth, value, divs, small, med, large, etc -
SO - don't really want to gamble with this $200k -
that's why it's been sitting in the dumb checking account.
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