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To: Leaning Right
"My point is - the stock market is a scam"

I think what he is saying is that stocks in general are bad news for the vast majority of investors. The fund he recommended is great for people like me who don't have hours on end to keep up with this stuff. The fund just kicks ass year after year with minimal downside (at least to this point)
35 posted on 09/04/2012 10:41:28 AM PDT by AdamBomb
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To: AdamBomb
The fund just kicks ass year after year with minimal downside

I too am a fan of VWINX. In fact, if I could only own one mutual fund, that would be the one. That would be especially true if the fund were in a tax-sheltered account.

But be aware that VWINX holdings are about 60% bonds, mainly intermediate bonds. When interest rates decline, those bonds appreciate and the fund makes good money. That's been the case in the last 5 years.

But if interest rates rise, and especially if they rise rapidly, this fund will take a real hit.

I'm not arguing against this fund! VWINX gives you more return than a money market fund or a CD would, but there is more risk, and you should know that.

If the risk bothers you, consider dollar cost averaging into the fund: instead of putting all your money in at once, send Vanguard a smaller amount each month.

38 posted on 09/04/2012 11:15:08 AM PDT by Leaning Right
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