| snowpimp |
12-12-2003 12:13 AM |
Depends on whether or not you have other investments....if you're putting all your investment eggs in this one basket, so to speak then i'd recommend a balanced mutual fund that has stocks of every size (large, mid, small-cap), in every category (tech, financial, consumer, etc). There should be both US and foreign stocks and also about 20% in bonds for a little security. A proven 10+% average as pointed out by detoxed is a good way to go.
When you signup for Ameritrade, they'll give you access to a mutual fund screener which is pretty good and will let you narrow down your search to just a few good funds and I would look among the Balanced Funds. Try to pick NO LOAD funds if you can, it'll save you money.
One more thing...you said you're gonna need the money to pay for school, I would reconsider buying stocks at all if you plan on needing the money anytime soon. Stocks are a long term investment!!
I checked out that fund you're looking at.
http://finance.yahoo.com/q/pr?s=OAKLX
It looks pretty good but you just never know what stocks are gonna do in the short term and it would be a shame to sell at a loss when your payments come due. Stocks are looking to be heading up but I said the same in March 2002 and it took over 14 months to actually go up from there. Things could remain rocky for a few years hence you're taking a big risk. On the flip side, they could keep heading up and reach 12000 within a year or two, so you're also taking a risk by not investing. Doesn't uncertainty suck? That's why people invest for the long term cuz it's pretty safe to say stocks will go up in the next 20-40 years but no-one knows about the short term. If you know exactly when you'll be needing the money, a CD might be a good way to go for you and much safer than stocks. If however you don't mind losing up to 20 or 40% (unlikely) and are willing to take the chance to earn 10, or 20 or 40% or more, then go for it! |
