Growth Fund or Money Market? Seeking advice!

I've recently opened an IRA for my wife and an Educational IRA for my son at Wells Fargo. I've read through some of the suggested growth funds (T. Row Price, Tempelton, etc...) and none really jump out at me. I plan to contibute the max per yet to each. My questions are:

Should I consider a switching to a growth fund versus the money market account the funds are sitting in? The interest rate in not worth mentioning but with today's economy it may be the less risky choice.

Does anyone have any experience with T. Rowe Price? They seem to be the best choice of the options from Wells Fargo Advantage Funds.

Thanks!

M

What is your time horizon for these 2 accounts?

Be very careful where you put your money. Many people think that the stock market is on a verge of full-blown collapse.

What is your time horizon for these 2 accounts?

Not sure I fully understand your question. These are open ended accounts meaning their is not timeframe. Open until I decide to move them or retire and liquidate them I assume.

Be very careful where you put your money. Many people think that the stock market is on a verge of full-blown collapse.

This is why I am asking. I also heard the same. I am employed by one of the top 3 banks in the U.S. and it's pretty appearent that they are feeling the same way.

Talking through this with everyone makes me realize I need to keep my money in the FDIC Insured accounts that it sits in now.

M

What is your time horizon for these 2 accounts?
i think what he is asking here is WHEN do you need this money? are you saving for retirement and, if so, how long until you plan to retire? if you need this money for paying for college (and your kid is 15-16 yrs old) or plan to put a down payment on a house in the next 2-3 years, the answer one would give will be very different than if you have 20-30 years until you retire and are comfortable not accessing it for that length of time.

i think what he is asking here is WHEN do you need this money?

This is correct.

Should I consider a switching to a growth fund versus the money market account the funds are sitting in? The interest rate in not worth mentioning but with today's economy it may be the less risky choice.




Even if we hit "Recession: Part Deux," growth funds are already at a 20-someodd percent discount from October's highs. If these funds are for long-term growth (not needed any time soon), you could do far worse than growth funds. Also, T. Rowe Price is a strong mutual fund company with good performance and low maintenance fees.

If the timeframe for the money is 20 years or more (retirement) then I would strongly suggest a growth fund with more than 80% in equities.

If the timeframe for the money is between 10 and 15 years (college) then I would advise to go with mostly equities and some bonds (80-20 suggested).

If the timeframe for the money is less than 10 years, I suggest 10% bonds for every year under 10 (so if money is needed in 7 years, 30% bonds and 70% equities makes sense; if money is needed in 2 years 20% equities (max) and 80% bonds/cash is suggested).

Investing when the market is low is a good way to make money once it goes up.

I think it's better to learn it yourself. I use T Rowe Price and I like them a lot. Read investing magazines (Money, Forbes). Read mutual fund annual reports from T Rowe Price. Some financial advisors don't always have your best interests in mind. They have quotas for products that they have to sell. Good luck.