Money Magazine: 7 Investments to Help Your Portfolio
Money Magazine has looked things over and decided that there are only 7 investments you’ll ever need. The investments chosen allow you to simplify your investment portfolio with solid funds that have a reasonable rate of return. And, with the market in turmoil, now is the time to get started (if you haven’t already).
Use a little dollar cost averaging to get a regular investment regime going. The returns aren’t as high, but for most people — especially in terms of retirement savings — it’s the consistency that matters. Here is what Money suggests:
- Fidelity Spartan 500 Index. This is a blue-chip US stock fund that offers a good buy, according to Money.
- Vanguard Total International Stock Index. Here’s something that allows you to diversify into foreign markets. And the fund beats almost all of its peers in terms of performance.
- T. Rowe Price New Horizons. This is a fund that invests in small companies that have potential for growth. This is one of the very few managed funds that Money recommends.
- Vanguard Value Index. A solid fund that looks to get good value for your investing dollar. Emphasis is on dividends instead of growth.
- Vanguard Total Bond Market Index. Bonds are fairly solid and considered “safer” than other investments. This could be a good way to build a solid foundation in your investment portfolio.
- Vanguard Inflation-Protected Securities Fund. This one really piqued my interest. It is meant not to offer amazing returns, but rather to serve as a hedge against inflation. The five-year return is low for an investment (6.6%), but it does more than beat inflation.
- Fidelity Cash Reserves. This is a money market account that allows you some liquidity in your portfolio. Right now the yield is low, but the idea is to have money that is fairly easy to get at — without selling stocks and possibly having to pay taxes on the money. Plus, in terms of retirement savings,a money fund allows you to put some of your income from other investments safely away.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.
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retirement savings, investments, dollar cost averaging
