Investing vs bank cds
I’ve got approximately $50,000 I’d like to take out of savings/CDs and invest for better return. Is investing in a few high rated mutual funds a good way to invest? And if so, what’s the best and most low cost way to do so?
Terry Says
First answer these questions: How much of this money are you willing to lose? And how long is your time horizon for needing this money?
If you are willing to stick with a mutual fund investment for at least 20 years, and won’t panic in a market decline, and if you are over 50 years old, I’d recommend an Equity Income Fund purchased through Vanguard or Fidelity (low cost, no fees).
BUT — if you are unwilling to lose a penny, and will have a need for this money in the next 5 years, stick with short term CDs or a money market deposit account at your bank. Rates will rise in the future to offset inflation. And you won’t lose a penny.
