On 19 Jan 2013
What percentage of your available money would you invest and how?,
I'm single, no kids. In the early 40's.
What I have noticed is that having the money in a bank doesn't help much as interest rates are so low. Is quite different to put the money in a high yield account or mutual funds. Example, assume you have 100K:
-If you leave that money under the mattress, you get 0 dollars a year
-If you put the money in regular savings with 0.1% interest you get 100 dlls a year
-If you put the money in a high yielding account with 1.0% interest you get 1,000 dlls a year
-If you put the money in mutual funds and assume an average of 7% return then you get 7,000 dolls a year
Do you see my point on how different is life just by taking small actions? My intention with this thread was to understand how much of their money people put in investments and of what type.
I'm afraid of having more than half of what I have in mutual funds due to the risk. But in the other hand having money park on the bank doesn't help much. That is why I was asking what is people's comfort level.
Thanks to all for your comments. On 5 Aug 2012
How to invest 80K?,
Thanks for the answers/poiunters.
If It helps, I'm in my early 40's and I have 401k and some money in Bank. I was tempted to invst because nowadays regular banks give no much in return, they give like 0.3% Max.
I did some research and looks like Compass Bankhas money market with 1% locked rate from now to May 2013. American Express Personal Bank gives 0.85%. Neither of them have a restriction so you can take money out anytime. However comparing with the 8% or so I see my 401K gives.
Hope Michinaga finds this info useful.