Saving for a house
QI’m saving to buy a house in a few years. How should I invest that money?
ANot in stocks, unfortunately. The stock market is arguably the best way to grow your wealth over the long run, but in the short run, anything can happen — such as a market crash at an inconvenient time, forcing you to postpone your purchase.
Park short-term savings — money you’ll need within five years (or even 10 years, to be more conservative) — in safer places, such as bank accounts, certificates of deposit (CDS) or money market accounts. You can find good rates for such accounts at our sister site, Theascent. com.
QAWhat, exactly, are “tech stocks”?
When many people hear the term “tech stocks,” they probably imagine companies such as computer hardware manufacturers, semiconductor specialists and software companies. But these days, many, if not most, companies employ a lot of technology in their operations.
Airlines, for example, rely on very technically complex machines and employ fancy software to manage their logistics. Banks may seem like old-fashioned businesses, but there’s a lot of technology behind the scenes as millions of transactions are processed electronically, and consumers are shifting to banking online. Even Nike has recently introduced technology (“Nike Fit”) that measures your foot electronically and recommends the correct shoe size for you — in its stores or via an app. Some companies are even 3D-printing shoes.
The energy industry uses technology to produce solar power and search for oil, among other things. Retailers use technology to track their inventory and remain stocked. Some are even using robots in warehouses. As you can see, “tech stocks” isn’t a particularly distinctive term anymore.
An adviser held to a fiduciary standard must put your interests first and find the investments that will serve you best. Advisers who are not so bound only have to recommend suitable investments — some or all of which might reward them with commissions. (Not sure if your adviser is bound by fiduciary duty? Ask!)
The good news is that there are lots of no-load funds — the vast majority of mutual-fund dollars, in fact, are invested in no-load funds. So focus your attention on funds with no loads, and aim to minimize other annual fees you pay. (A fund’s annual fees are typically grouped together as its “expense ratio.”)
I trace my roots back to Los Angeles in the 1930s, when Hubert Hansen and his sons launched a business in fresh fruit and vegetable juices. Later, I sold sodas. I filed for bankruptcy protection in 1988. I survived and expanded — offering smoothies, vitamin drinks and energy drinks — and got a (scary) new name. Some of my operations were later sold to Coca- Cola. Today, with a market value recently topping $42 billion, I’m an energy-beverage giant, with my drinks sporting words such as Burn, Full Throttle, Mother, Hydrosport, Reign, Samurai, Relentless, Gladiator, Predator, Fury and more. Who am I?
Last week’s trivia answer
I trace my roots back to Japan in 1889, when a young man founded a company to make and sell playing cards. I expanded into other games in the 1960s, electronic arcade games in the 1970s — and home video games in the 1970s, as well. In 1989, I introduced one of the first portable handheld game consoles — named for young men. That was followed by systems such as Wii and Switch. My American subsidiary launched in 1980. Shortly afterward, I introduced two Italian plumbers to the world. I’ve sold more than 750 million game consoles worldwide. Who am I? (Answer: Nintendo)