You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
We think that both the investments you mention probably deserve a spot in your portfolio, although not the entire spotlight. Make no mistake, both of these investments may be subject to significant fluctuation.
We think having cash, equivalent to what you anticipate using in the next two to three years is a sound move. A high yield savings account would be ideal for this purpose. Yes, we understand that in today’s environment that’s a bit of an oxymoron, but still the stability and safety is welcome.
You could also incorporate some guaranteed investments – a certificate of deposit ladder or a savings annuity in the mix. On the bond front, a short-term bond fund could also be part of your portfolio. Typically, short-term bond funds will be less sensitive to rising interest rates.
In the end, how you invest should be determined by your goals, risk tolerance, and tax situation. It might be beneficial to sit down with a fee-only Certified Financial Planner™. While you would pay for the time and advice, this person would not be trying to sell you any investments and would shoot you some straight advice for your particular tolerance for risk and situation.