Re: taking the plunge

No good advisor will help you for free... unfortunately,

charlie chee.

"Caliban" <[EMAIL PROTECTED]> wrote in message
news:[EMAIL PROTECTED]
> "Paul Erickson" <[EMAIL PROTECTED]> wrote
> > Background:
> >
> > I'm a newbie.  I've got  just over $300K to invest long-term, and need
> > to generate about $1500.00 gross per month for needed additional
> > income.  I don't want to attack principal (who does?), and would like
> > to see moderate growth over the next 15 years or so.
> >
> > I've seen two investment counselors who've recommended many mutuals of
> > which the primary is American Funds.  The load is far too high, IMO.
> >
> > I'm leaning heavily toward Vanguard Index Funds, but am at a loss as
> > to how I should divide up this moderate amount of money.  Moderate
> > risk is okay, but I'm not sure how realistic this whole scenario
> > is in light of the fund scandals, market flakiness, etc.
> >
> > I do realize that free advice is worth exactly what you pay for it,
> > but I would like some voices to chime in on what direction I should
> > take.
> >
> > Of course, thank you for any and all answers in advance.
>
> You want 6% income a year *and growth*. This is a very steep task, as
Sandra
> pointed out.
>
> If you lower your monthly income requirement, it's more likely you'll get
the
> income and the growth. (Not the news you wanted to hear, I bet.) You'll
find
> income and growth most safely through a combination of high grade bonds,
maybe
> some CDs, and a diversity of mutual funds. You might want to consider
laddering
> bonds (or CDs) as part of this 15-year plan, too. Buy a pile of bonds with
a 7
> year maturity right now. Next year, buy another pile of 7 year bonds. Etc.
until
> the 8th year. Or a similar laddering plan. You will have to find a good
place to
> store the dough you plan to put into bonds each year. Maybe EE and I
savings
> bonds. Low yield but better than money markets and easily cashed in after
a
> year.
>
> Also, do you own a house? Have you factored in paying off the mortgage and
how
> this will save you money and thus yield income? If you don't own a house,
> consider how much you'll save by buying one instead of paying rent.
>
> I am not thee expert here but am posting just because it takes awhile for
> everyone else to chime in. "Thee expert" is likely to be some sort of
average of
> the responses here. I doubt many paid financial advisors would be better,
if the
> usual regulars on this newsgroup post.
>
> Either way, any financial advice anyone gives you is a bet. Be safe, try
to do
> better than average, but don't have regrets if you don't have the highest
return
> of another person.
>
>