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Until you figure it out, immediately dump half of it into a Vanguard 500 Index fund (VFINX). Vanguard's management fees are tiny (one quarter of one percent-ish
by rbranson 16y ago
Until you figure it out, immediately dump half of it into a Vanguard 500 Index fund (VFINX). Vanguard's management fees are tiny (one quarter of one percent-ish). No other risk investment will do you better than the S&P 500 as it's compound annual growth rate has been 8.92% since 1897. Also, getting in and out of the fund can be done in $100 increments and there are no fees for it, so your money stays in a pretty liquid state.
- dstein 16y agoWith this much money you obviously don't want to be dropping the whole lot into the market at one point. If this were 2009 it would've been a great decision, but after a 2-year bull run that looks like it's petering out I'd probably opt to keep most of it in cash/bonds/money market until you have a better plan for the money.
- rbranson 16y agoPerhaps over a 3-year span. However, over 10-20 years, you can't beat the market. Even if you try to predict the ups and downs, the odds are pretty stacked against you. The only funds that have been able to beat the market over a non-trivial span of time have been pyramid schemes.