Index Funds or Money Market?
Terry,
Sadly I tuned into your interview with Steve Bertrand on WGN too late on Tues. and only heard at the end that you advised a woman in her 80’s to put her money in a Moneymarket fund only. I am concerned as Fidelity is purchasing bi monthly for me mostly their Index funds (Total Market, Small Cap) and NasDAQ Composite. Is this okay, or should I be changing this to a moneymarket
fund? I would very much appreciate your advice.
Terry Says
It all depends on how much money you can afford to lose! And that should be based on your age, your risk tolerance, your projected expenditures, etc. It’s not one-size-fits-all advice. If you are in your 80s and don’t want to lose a penny, then yes a money market fund. You won’t earn much interest, but you don’t risk a penny.
But if you are in your 40s or 50s, still working and contributing, then you need long-term growth. And if you don’t understand any of this, go to my website, click on the box top right corner to “find a financial planner” and then you will be connected to Wealthramp – -a service that will match you with carefully vetted, FEE-ONLY, FIDUCIARY (putting your interests first) financial planner!
