Last month, Changing Gears teamed with authors and CNN anchors Ali Velshi and Christine Romans to collect your questions on the personal finance issues that you’re facing because of the recession. 
Today, we’re bringing you the next in our series of Midwest Money answers from Ali and Christine, based on their new book,How To Speak Money: The Language and Knowledge You Need Now. (Each person whose question is used will receive a copy of the book.)
Ishtiaq Bercha, of Aurora, Colorado, writes with a common concern.
“What should I do with my savings? Should I keep cash in the banks, invest in stocks and bonds — or gold? What is the best prospect from a retirement perspective?
Ali and Christine respond,
“The answer, Ishtiaq, is easy. You want to be investing in all of these things! Cash in the bank, stocks, bonds, golds/metals (10 percent of your portfolio or a bit more if you have a higher risk tolerance), real estate and even businesses.
When do you start? And how much? After you pay off credit card debt and build a liquid savings of 6 months of living expenses, then you invest for the long term. Continue reading