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Old 10-02-07, 02:09 PM
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Originally Posted by DannoXYZ View Post

cash: -7% over past 30-40 years due to inflation
CD/MM: 3-4%
bonds: 3-6%
real-estate: +7%
funds: -10 to +20%
stocks: -15 to +30%
stock-options: -100 to +1000%
futures & commodities: -1000 to +2000%
futures-options: -100 to +3000%
Wow, I have to invest more into Real estate. Only upside potential with 0 risk. Gotta love that.

Actually it sounds like Bob has a specific time frame and goal, therefore I assume he wants to preserve his initial investment in a lower risk investment vehicle. I would assume a money market fund (at around 3.5%) is the way to go. Otherwise he starts to take on risk which I assume he's trying to avoid.

If he's willing to risk some of his capital, he likely has a long enough time frame to invest in stocks to try and better his return. Perhaps a balanced mutual fund (mixture of stocks, bonds, etc). A safer investment vehicle than stocks, however you can still have a negative return depending on the asset mix.
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