When it comes to investing you want to be diversified, consistent, and be in it for the long run. There are so many opinions of the best way to invest. It really comes down to your interest level and level of knowledge in investing. I think the key is simplicity.
For most people they do not have the time or knowledge to invest properly. One of the best investment companies is Vanguard. Vanguard provides very low cost Mutual Funds and ETFs. They never got into the Mortgage mess and are consistently rated very highly by clients. The key though is the low cost which allows you to keep more of your own money.
Here is my Simple Portfolio of only 4 Mutual Funds–I would invest 25% in each. However, what is generally recommended is to invest your age in bonds. So if you are 40 years old you would invest 40% in bonds and then 20% in the remaining 3 funds.
1) Vanguard Dividend Growth Fund: this fund invests in Large Cap companies that pay a Dividend.
2) Vanguard Small-Cap Index Fund: this fund invests in Small Cap stocks that tend to have more risk but better growth.
3) Vanguard Total International Stock Index Fund: this fund gives you International Stock exposure.
4) Vanguard Total Bond Market Index Fund: this fund gives you exposure to the stability of bonds. It is a mix of all types of bonds and pays a monthly dividend.
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