Friday, February 5, 2016

Thursday, January 14, 2016, When the Dow closed at 16,379.05; "I ran across a friend whose 401k plan account was transfered to Schwab."

He/She asked me what to do with the money.

I suggested going to cash ASAP in a US Treasury Money Market and dollar cost averaging into the following low cost index funds mirroring the federal government's very inexpensive Thrift Savings Plan in equal investments over 36 months;

Vanguard Intermediate-Term Bond Index Fund Admiral Shares

Vanguard Extended Market Index

Vanguard FTSE All-World ex-US Index Fund

Vanguard 500 Index Fund

US Treasury Money Market
With negative interest rates most likely on the way, I advised having a good chunk of cash, as in physical bills on hand.

I would also have a few gold and silver coins just in case as well.

It's going to get uglier.