Personal Investment & Financial Planning Q`s/Retirement


QUESTION: Hi my name is John and I'm in my late 20's and have $1,500 to invest and would like to know if I'm better off putting in to a money market account or buying mutual funds?

ANSWER: Hi. The answer to this question depends on when you will need the money as well as your specific investment goals and risk tolerance. Investing in a money market fund will be low risk and will also provide virtually no return. This is typically best suited for someone who will need the money within a year. If you are investing for the longer term and can tolerate some risk, then investing in a diversified stock/bond mutual fund will probably make more sense. If this is the case, then I visit and go to the personal investors portion of their website under planning and advice and learn more about some different investment options. Also feel free to follow up with me with specific questions. Thanks!

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QUESTION: I'm thinking of investing 3 to 5 years down the line and would like to have money as a down payment for a house. Now since this is my 1st time investing. I heard the best thing to do is to put my money on a stock market index fund. Would you agree to this?

Hi. Thanks for the clarification. I would agree that investing in a diversified stock index fund could make sense, however, you also need to be aware of the risks involved with needing to liquidate the investment within 3-5 years. I assume the last thing you would want to see happen is for things to be going along great and then a few months before you need the money there is a big pullback in the stock market and you are forced to sell your investment at no gain or at a loss. I would still visit and educate yourself on risk tolerance and the associated investment options. Once you had done this, please let me know if you have specific questions. Thanks!

Personal Investment & Financial Planning Q`s

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John D Smith, CFP


I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related comprehensive wealth management and investment concerns.


I have been providing fee only investment management and comprehensive wealth management services for the past 19 years.

I have a degree in Financial Planning & Counseling and I am also a Certified Financial Planner practitioner.

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