What to do with $50,000 now
Low interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.
Diversify your fund portfolio
Superhigh minimums discourage frequent traders, so less money needs to be held in cash for redemptions and more can be working for investors. These three Vanguard stock funds -- all of which have $25,000 minimums and which have walloped their peers over the past five years -- could make wise additions to a core equity portfolio now.
Fund: Vanguard Energy
Expense ratio: 0.28%
Five-year return: 14.9%
Why now? Holds large oil stocks, which typically do well when the global economy does.
Fund: Vanguard Health Care
Expense ratio: 0.29%
Five-year return: 5.9%
Why now? Invests in health-related companies that aging boomers will rely on in the coming years.
Fund: Vanguard International Explorer
Expense ratio: 0.36%
Five-year return: 9.0%
Why now? Lets you venture into faster-growing small and midsize stocks overseas at low cost.
NEXT: Buy these 10 stocks
Fund: Vanguard Energy
Expense ratio: 0.28%
Five-year return: 14.9%
Why now? Holds large oil stocks, which typically do well when the global economy does.
Fund: Vanguard Health Care
Expense ratio: 0.29%
Five-year return: 5.9%
Why now? Invests in health-related companies that aging boomers will rely on in the coming years.
Fund: Vanguard International Explorer
Expense ratio: 0.36%
Five-year return: 9.0%
Why now? Lets you venture into faster-growing small and midsize stocks overseas at low cost.
NEXT: Buy these 10 stocks
Last updated October 21 2009: 11:03 AM ET
NOTE: Annualized returns as of Sept. 22. SOURCE: Morningstar
How would you spend $10,000?
