How old are you? Really this isn’t so much a personal question as it is a question of what risk it’s appropriate for you to take with your money. Young people really shouldn’t be keeping their money in savings accounts or money market funds or bonds (or, it might be argued, in mutual funds), but should be risking their capital in stocks, options, currencies and futures. Why? Because you never know – with some skill and a healthy dose of luck, your money could double in a year (or much, much better). And, if you lose dramatically and painfully, it’s okay. You’re young, you’ll recover.
On the converse, if you’re getting on in years and really don’t have time to recover from the losses that might come from investing in the markets, it’s better to put your money in more stable instruments, like tax-free municipal bonds, por exemplo.
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