Okay I've been reading all the articles on this site. Really really good I must say. Now I have some questions.
After what I've read, I'm strongly reconsidering my decision to buy a house in a few years when I return to the States. What John says about home ownership really makes sense to me. I've had two houses in the past, one which I rented out. It was quite the pain. Don't think I'll ever do that again. So I think I'm going to withdrawal my money out of the CD (losing only two months in interest) and invest it into index mutual funds. That leads me to my question: Which ones?
Many of the articles talk about diversification but also seem to be saying to stick with something as simple as just the Vanguard S&P 500 index fund or am I wrong?
Would investing in just the S&P fund be adequate for an investment under $100K or would this be too risky? In the article: "Asset Allocation for the Ages" [1998] it mentions a "... a balance in a diversified portfolio of domestic and foreign stocks." But in the: "Invest for Retirement" [2001] article it mentions to avoid international investments all together. That there is: "... little of investment interest outside of the United States." Did something change between 1998 and 2001?
Is it good to invest in foreign investments or not really?
How can I figure out what mix of fund(s) would be appropriate for me? Can anyone shed some light?
Natalie
After what I've read, I'm strongly reconsidering my decision to buy a house in a few years when I return to the States. What John says about home ownership really makes sense to me. I've had two houses in the past, one which I rented out. It was quite the pain. Don't think I'll ever do that again. So I think I'm going to withdrawal my money out of the CD (losing only two months in interest) and invest it into index mutual funds. That leads me to my question: Which ones?
Many of the articles talk about diversification but also seem to be saying to stick with something as simple as just the Vanguard S&P 500 index fund or am I wrong?
Would investing in just the S&P fund be adequate for an investment under $100K or would this be too risky? In the article: "Asset Allocation for the Ages" [1998] it mentions a "... a balance in a diversified portfolio of domestic and foreign stocks." But in the: "Invest for Retirement" [2001] article it mentions to avoid international investments all together. That there is: "... little of investment interest outside of the United States." Did something change between 1998 and 2001?
Is it good to invest in foreign investments or not really?
How can I figure out what mix of fund(s) would be appropriate for me? Can anyone shed some light?
Natalie