I’m wanting to start a Roth IRA and at the same time start some (relatively) short term (5 years) investing. I’m hoping to invest enough and invest well enough to have enough to buy a modest house outright when I cash it out. If I put my into a market averaging 3.5% interest, I should have about %80K in 4 years. I’m hoping to invest and get at least 10% interest.

 

  • Jasper 7:49 am on August 25, 2010

    Atleast 10% ineterest???

    Please don’t take me as a horses petute here, I am trying to help.

    It is very unlikely that you are going to get 10% interest on an annual basis, without a fair amount of risk to your principle.

    Since you are looking to not lose money at all, you will want to be very conservative.

    About 75% of all mutual funds under perform the stock market. All of them have management fees, and some have sales loads.

    Despite all of these fees, there are still some good mutual funds available, but you really have to look. I am invested in the Bruce Fund (BRUFX) and the Fairholme Fund (FAIRX). They have been great in the past, but this year is slowed.

    DRIP’s are great long-term investments that generally yield double-digit returns, over a long period of time. I am not so sure you will get double-digits with a DRIP if you just keep it in for 5 years.

    You face the classic dilemma, you want safety and high returns. So does everyone else in the country.

  • Jackson D 7:49 am on August 25, 2010

    You may want to check out:

    http://www.indydollar.com/mfbooks