Quote:
Originally posted by blckwidow
Just how have the "rules of the road" changed?
This is the same crap that people said during the depression. My grandfater listened to them, and put all his money in EE bonds. My grandmother (his wife), a woman who didn't have a job, didn't have her own money, didn't listen. She scrimped and saved a little here and a little there, and invested it all in stocks (about $5000 total). Who do you think left my brother and I a nice big chunk of stock worth a whole lot of money? (I would never advise anyone to put all their money in just one or two stocks, but they didn't have index funds back then) Who do you think left us with a whole lot less even though he invested TONS more than she did?
My mom used to be a stockbroker (retired), 2 of my brothers manage bond funds, and one of my brothers is an analyst. When I had money that I wanted to start investing, I went to each of them separately and asked their opinion. Each and every one of the said "Vanguard total stock market index fund."
The rules of the road haven't changed, you just don't have enough experience with the market to know that people are ALWAYS saying that the rules of the road have changed.
Karen
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hey, i never claimed to be an expert; some others were providing investment advice and i thought it would be appropriate to show an other point of view. You and your family's advice do not make for a universal truth. But then again, I am very much in agreement with you and have kept all my money in my equity funds during the raping of the past couple of years becuase I have a long term time horizon and I have been around long enough in the market that people are sheep and sell at the bottom at the worst possible time and lock in their paper losses after they finally capitualte that nothing will ever get better. But, that being said, I wouldn't trust S&P 500 mutual funds with any significant % of my total and you should read more from some additional experts besides your family that counter what you think so you can see what I see.