Tilted Forum Project Discussion Community - View Single Post - How much of my check to put in a mutual fund?

Cynthetiq · 03-04-2004, 02:35 PM

Quote:

Originally posted by Bamrak
CD's are just glorified savings account with very little return. I would suggest dropping the CD for the mutual fund. The mutual fund appears to be very stable and has been around for quite a while. for the last 10 years your fund has averaged 9%
link: http://cgi.money.cnn.com/mstar/FundL...DGAGX&report=2 .

On a side note, you can start using Viagra and use the excuse that you're helping your investment (Pfizer is your #2 company)
Here's a list of the top 10 and some more info on your fund,
http://cgi.money.cnn.com/mstar/FundL...DGAGX&report=4

CD's are averaging from what I've found about 2.19% APY. if you were going to be seriously investing, I don't think CD's are your best bet. You can find mutual funds with longer track records, more companies(less risk), and better return out there. A good mutual fund should yield about 12 % a year over a 5 year period( mine made 41% last year, but lost 8 the year before). You sound like you are financially stable, why not invest some of your take home pay into a Roth IRA?

But to your original question, If you don't need the paycheck, invest most of it. if nothing else, you aren't spending it on useless stuff.
I hope at least some of that helps!

yes CD's don't outperfom the investments, but then you have taken away the ability to have emergency funds that could be liquid with no capital gains penalty. I'm sure that I could put my CD's into a mutual fund situation but if there's an emergency I cannot count of the exact amount that will be in there, and I'll have to divest the mutual fund as opposed to just withdrawing the CD.

I currently have 3 91 day CD's rolling over ever 30 days so that each month I have a CD that matures and if there's an emergency that money is immediately available.