Vanguard GMNA Fund
Should you have your money in cash? Not according to a good friend of mine. He recommends putting your cash into a Vanguard Ginnie Mae Fund. Ginnie Mae funds are backed by the federal government. Ginnie Mae is a federal program designed to provide mortgage loans to consumers. The program guarantees the principal and interest will be paid. They guarantee it. The only way this fund goes down is if the government goes under. Since Congress can just decide to print more money, I doubt the government will go under. If it does, our problems are much bigger than the cash you put into a Ginnie Mae fund. Anyway, even in it’s worst years, it’s only been down a couple percent. Usually, it gets about a 4-5% return and is very steady. I just put most of my cash, left on the sidelines, into this fund. The symbol is GNMA VFIIX. One reason I chose Vanguard is because of their fee structure. The other reason is because my friend told me to and since he told me to get out of the market last June (and saved me thousands of dollars), I trust him.
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