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- Newsgroups: misc.invest
- Path: sparky!uunet!charon.amdahl.com!pacbell.com!tandem!pearson_steven@tandem.com
- From: pearson_steven@tandem.com (Steven R. Pearson)
- Subject: Re: >>>>> Where is the best place to stick it?
- Message-ID: <1992Nov18.185842.16361@tandem.com>
- Sender: news@tandem.com
- Nntp-Posting-Host: 130.252.132.133
- Organization: Tandem Computers Inc., Cupertino, CA
- References: <ssimmons.722038219@convex.convex.com>
- Date: Wed, 18 Nov 1992 18:58:42 GMT
- Lines: 38
-
- Ah, such a problem to have...
-
- > > I am about to receive a gift of $100k from a relative in a couple weeks.
- > > I would like to invest it somewhere for a couple years until I get out
- > > of school. Do you guys recommend stocks, bonds, funds, foreign currency, or
- > > mixture? I'm looking for something without much risk with a high return.
- > > Am I being feasible in anticipating a 10% return a year.
-
- Someone offers:
-
- > 10% return is awfully good for today's rates. You will need to
- > get pretty risk, like an aggressive mutual fund or a junk bond. For something
- > reasonably safe, you should expect 4-7%. Usually, you should try to develop
- > a portfolio. Some in risky, much in safe, some in long term, much in short
- > term. Personally, I would use the following blend...
- >
- > 50% in a CD in a bank
- > 20% in an aggressive stock fund.
- > 20% in an equity stock/bond fund
- > 10% in an checking or money market.
- >
- > The key to wealth is to try to accumulate it.... not risk losing it.
-
- My thoughts:
-
- Without knowing more about your financial situation and your intended use of
- the windfall are, any particular asset allocation recommendation, including
- the conservative one above, is a bit premature.
-
- Of course, it might be wise to pay off any expensive debt you have and set aside
- some liquid reserve in case of emergency, if these things are not already taken
- care of. After that, how you invest the rest should be goal-driven. If you want
- a good intro to several "professional's" opinions regarding how to invest for
- different kinds of goals, hie thee to the local public library. In the long run, you
- are ultimately responsible for your own results (and blaming them on inadequate
- net.advice will only buy you so much comfort). Arm yourself with knowledge.
-
- -steve p.
-