What to do with a little money?

[DWarrior]

[ QUOTE ]
Cash=guaranteed 4% return with a 0% variance
S&P 500=???? return (avg. return ~11%, variance y% [I don't know exactly, but I'd guess y=~20])

[/ QUOTE ]

I don't know if s&p has a variance of 20%, prolly 10%

[buffett]

I guess I was thinking of standard deviation.

[Maulik]

[ QUOTE ]

Cash=guaranteed 4% return with a 0% variance

[/ QUOTE ]

you should consider inflation variance alternatively, consider 4% not the true return.

[buffett]

inflation hurts the cash holder and the index holder equally