401k advice

[michael]

You can save cash in your 401k also, except at a much faster rate…

Lets see, you earn $1000. For simplicity, lets assume a 25% federal tax bracket. You are left with $750 to put in your cash savings account. The account earns, let’s say, 4% or $30 (annualized). Since it is not a tax deffered account you owe $7.50 in taxes, leaving you $22.50 in earned interest and a total of $772.50

If you would have left the money in the 401k you would have $1000 (pretax contribution). In this example the employer is contributing 25% or $250. You now have $1,250. This account also earns 4%. 4% x $1,250 = $50. The account is tax deffered so I don’t have to pay taxes and I can keep my $50 of interest for a total of $1,300.

401k plans do suck!

[michael]

You can save cash in your 401k also, except at a much faster rate…

Lets see, you earn $1000. For simplicity, lets assume a 25% federal tax bracket. You are left with $750 to put in your cash savings account. The account earns, let’s say, 4% or $30 (annualized). Since it is not a tax deffered account you owe $7.50 in taxes, leaving you $22.50 in earned interest and a total of $772.50

If you would have left the money in the 401k you would have $1000 (pretax contribution). In this example the employer is contributing 25% or $250. You now have $1,250. This account also earns 4%. 4% x $1,250 = $50. The account is tax deffered so I don’t have to pay taxes and I can keep my $50 of interest for a total of $1,300.

401k plans do suck!

[drunkle]

cash is liquid.

suze orman’s take:

http://www.msnbc.msn.com/id/21793722/

Scenario No. 2: A young single professional in their late 20s to mid 30s. Perhaps they are either finished paying off their college loans or close to it. They may have credit card debt. Maybe they just received a recent promotion or have taken a new job; they are making more money, and want to start being more aggressive when it comes to saving, perhaps for retirement, perhaps as a nest egg to start a family. What is the best investment option for a young, single professional?

Do: Buy a home you can call your own. There will never be a better tax write-off than a home. Next, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.

Never: Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can’t afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market. Also, never ever borrow against your 401k plan because you will pay double taxation on the money you borrow. Because you don’t pay taxes on the money you put into a 401k, when you pay back the loan (which you must do within five years, or 15 years if used to buy a home), you pay it back with money you have paid taxes on. Then, when you retire and take the money out again, you end up paying taxes on it a second time. And that isn’t even considering the penalties you have to pay if you change jobs/quit/lose your job, in which case the money is due immediately and subject to taxes and a 10% penalty.

[drunkle]

cash is liquid.

suze orman’s take:

http://www.msnbc.msn.com/id/21793722/

Scenario No. 2: A young single professional in their late 20s to mid 30s. Perhaps they are either finished paying off their college loans or close to it. They may have credit card debt. Maybe they just received a recent promotion or have taken a new job; they are making more money, and want to start being more aggressive when it comes to saving, perhaps for retirement, perhaps as a nest egg to start a family. What is the best investment option for a young, single professional?

Do: Buy a home you can call your own. There will never be a better tax write-off than a home. Next, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.

Never: Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can’t afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market. Also, never ever borrow against your 401k plan because you will pay double taxation on the money you borrow. Because you don’t pay taxes on the money you put into a 401k, when you pay back the loan (which you must do within five years, or 15 years if used to buy a home), you pay it back with money you have paid taxes on. Then, when you retire and take the money out again, you end up paying taxes on it a second time. And that isn’t even considering the penalties you have to pay if you change jobs/quit/lose your job, in which case the money is due immediately and subject to taxes and a 10% penalty.

[drunkle]

cash is liquid.

suze orman’s take:

http://www.msnbc.msn.com/id/21793722/

Scenario No. 2: A young single professional in their late 20s to mid 30s. Perhaps they are either finished paying off their college loans or close to it. They may have credit card debt. Maybe they just received a recent promotion or have taken a new job; they are making more money, and want to start being more aggressive when it comes to saving, perhaps for retirement, perhaps as a nest egg to start a family. What is the best investment option for a young, single professional?

Do: Buy a home you can call your own. There will never be a better tax write-off than a home. Next, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.

Never: Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can’t afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market. Also, never ever borrow against your 401k plan because you will pay double taxation on the money you borrow. Because you don’t pay taxes on the money you put into a 401k, when you pay back the loan (which you must do within five years, or 15 years if used to buy a home), you pay it back with money you have paid taxes on. Then, when you retire and take the money out again, you end up paying taxes on it a second time. And that isn’t even considering the penalties you have to pay if you change jobs/quit/lose your job, in which case the money is due immediately and subject to taxes and a 10% penalty.

[drunkle]

cash is liquid.

suze orman’s take:

http://www.msnbc.msn.com/id/21793722/

Scenario No. 2: A young single professional in their late 20s to mid 30s. Perhaps they are either finished paying off their college loans or close to it. They may have credit card debt. Maybe they just received a recent promotion or have taken a new job; they are making more money, and want to start being more aggressive when it comes to saving, perhaps for retirement, perhaps as a nest egg to start a family. What is the best investment option for a young, single professional?

Do: Buy a home you can call your own. There will never be a better tax write-off than a home. Next, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.

Never: Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can’t afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market. Also, never ever borrow against your 401k plan because you will pay double taxation on the money you borrow. Because you don’t pay taxes on the money you put into a 401k, when you pay back the loan (which you must do within five years, or 15 years if used to buy a home), you pay it back with money you have paid taxes on. Then, when you retire and take the money out again, you end up paying taxes on it a second time. And that isn’t even considering the penalties you have to pay if you change jobs/quit/lose your job, in which case the money is due immediately and subject to taxes and a 10% penalty.

[drunkle]

cash is liquid.

suze orman’s take:

http://www.msnbc.msn.com/id/21793722/

Scenario No. 2: A young single professional in their late 20s to mid 30s. Perhaps they are either finished paying off their college loans or close to it. They may have credit card debt. Maybe they just received a recent promotion or have taken a new job; they are making more money, and want to start being more aggressive when it comes to saving, perhaps for retirement, perhaps as a nest egg to start a family. What is the best investment option for a young, single professional?

Do: Buy a home you can call your own. There will never be a better tax write-off than a home. Next, contribute into your company’s 401k if the company matches their contribution, but only up to the point of the match. Finally, contribute to a Roth IRA (if you qualify), or a nondeductible IRA if you don’t qualify for the Roth, so you can take advantage of the Roth conversion possibility in 2010. However, before putting money toward any of the investments above, you MUST pay off any and all credit card debt you have. Getting out of debt is the most important priority before investing for retirement.

Never: Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can’t afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market. Also, never ever borrow against your 401k plan because you will pay double taxation on the money you borrow. Because you don’t pay taxes on the money you put into a 401k, when you pay back the loan (which you must do within five years, or 15 years if used to buy a home), you pay it back with money you have paid taxes on. Then, when you retire and take the money out again, you end up paying taxes on it a second time. And that isn’t even considering the penalties you have to pay if you change jobs/quit/lose your job, in which case the money is due immediately and subject to taxes and a 10% penalty.

[ucodegen]

I was hoping for a response to my questions for Newblet, but I have heard nothing.

Since I have heard nothing, I’m going to respond to some statements:

@drunkle
401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
Incorrect. Social Security is a Ponzi scheme, but 401ks are not. In Social Security, incoming payments are paying the retiring, with a small gain from from the special issue treasuries that the Social Security Trust fund buys from the Fed (which then allows congress to borrow from the trust fund while paying that interest back to the Social Security Trust Fund). 401Ks allow one to buy stock, treasuries or to hold it in a money market(depending upon what your employer offers). Stock earnings are based upon growth of companies and earnings returned to shareholders in the form of dividends. In fact, the best scenario for a 401K is absolutely no growth in price.. all dividends.. until the day you retire.. upon which all the growth in price occurs. This gives you the best dollar cost averaged rate of return. NOTE: Even someone you quote later (Suzy Orman) supports 401Ks. I don’t support her justification on how you should limit your contribs to matching only. That discussion is a long and complicated one. The answer really is… it depends. Suzy Orman grossly oversimplifies things.. though considering her target audience, it makes sense.

the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
Essentially correct, but their manipulation is not that transparent. Best path is to ignore the talking heads that tell you to buy one stock and sell another.. only to reverse their decisions next month. The financial markets are paid for transactions. The manipulation of the stocks can actually work to your advantage. Look for when the manipulation pushes down the price of a good company with good earnings. A good quote: be fearful when others are greedy, be greedy when others are fearful – Warren Buffett, no relation to Jimmy.

401k’s are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
Not really. The growth also occurs on the amount that got deferred (which would have gone to the taxman). Later changes to tax law can also change taxation on other sources… including Roths. Nothing is really secure… just do the best possible. To outrun a Bear, you don’t have to be the worlds fastest runner… just be faster than the other guy.

growth in the stock market correlates with the creation of the 401k in the early eighties.
It also correlates to the drop in interest rates. In reality, it is a poor correlation to 401Ks, but very good correlation to interest rates. Most people do not exercise the 401K options (verified by the HR at my company and company of previous employment).

1) have children who are smart, educated, skilled and wont dump me into a gutter (the 401c plan; have 401 children)
Good luck. With the examples that the media is presenting.. I would not bet on being out of the gutter. Even your Suzi Orman quote references to not being a burden to your children in later life.

2) be independently wealthy either through size of bankroll or moving to singapore.
Singapore is not that cheap. Korea is getting expensive too. Thailand is still on the cheap side as well as Cambodia and Vietnam. So is Alaska(but man is it cold) While you are holding cash and trying to build the big bankroll, Bernanke and inflation is making each dollar worth less and less while other currencies are getting stronger.

3) die young. 65 is pretty young these days…
Well there is always that…

[ucodegen]

I was hoping for a response to my questions for Newblet, but I have heard nothing.

Since I have heard nothing, I’m going to respond to some statements:

@drunkle
401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
Incorrect. Social Security is a Ponzi scheme, but 401ks are not. In Social Security, incoming payments are paying the retiring, with a small gain from from the special issue treasuries that the Social Security Trust fund buys from the Fed (which then allows congress to borrow from the trust fund while paying that interest back to the Social Security Trust Fund). 401Ks allow one to buy stock, treasuries or to hold it in a money market(depending upon what your employer offers). Stock earnings are based upon growth of companies and earnings returned to shareholders in the form of dividends. In fact, the best scenario for a 401K is absolutely no growth in price.. all dividends.. until the day you retire.. upon which all the growth in price occurs. This gives you the best dollar cost averaged rate of return. NOTE: Even someone you quote later (Suzy Orman) supports 401Ks. I don’t support her justification on how you should limit your contribs to matching only. That discussion is a long and complicated one. The answer really is… it depends. Suzy Orman grossly oversimplifies things.. though considering her target audience, it makes sense.

the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
Essentially correct, but their manipulation is not that transparent. Best path is to ignore the talking heads that tell you to buy one stock and sell another.. only to reverse their decisions next month. The financial markets are paid for transactions. The manipulation of the stocks can actually work to your advantage. Look for when the manipulation pushes down the price of a good company with good earnings. A good quote: be fearful when others are greedy, be greedy when others are fearful – Warren Buffett, no relation to Jimmy.

401k’s are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
Not really. The growth also occurs on the amount that got deferred (which would have gone to the taxman). Later changes to tax law can also change taxation on other sources… including Roths. Nothing is really secure… just do the best possible. To outrun a Bear, you don’t have to be the worlds fastest runner… just be faster than the other guy.

growth in the stock market correlates with the creation of the 401k in the early eighties.
It also correlates to the drop in interest rates. In reality, it is a poor correlation to 401Ks, but very good correlation to interest rates. Most people do not exercise the 401K options (verified by the HR at my company and company of previous employment).

1) have children who are smart, educated, skilled and wont dump me into a gutter (the 401c plan; have 401 children)
Good luck. With the examples that the media is presenting.. I would not bet on being out of the gutter. Even your Suzi Orman quote references to not being a burden to your children in later life.

2) be independently wealthy either through size of bankroll or moving to singapore.
Singapore is not that cheap. Korea is getting expensive too. Thailand is still on the cheap side as well as Cambodia and Vietnam. So is Alaska(but man is it cold) While you are holding cash and trying to build the big bankroll, Bernanke and inflation is making each dollar worth less and less while other currencies are getting stronger.

3) die young. 65 is pretty young these days…
Well there is always that…

[ucodegen]

I was hoping for a response to my questions for Newblet, but I have heard nothing.

Since I have heard nothing, I’m going to respond to some statements:

@drunkle
401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
Incorrect. Social Security is a Ponzi scheme, but 401ks are not. In Social Security, incoming payments are paying the retiring, with a small gain from from the special issue treasuries that the Social Security Trust fund buys from the Fed (which then allows congress to borrow from the trust fund while paying that interest back to the Social Security Trust Fund). 401Ks allow one to buy stock, treasuries or to hold it in a money market(depending upon what your employer offers). Stock earnings are based upon growth of companies and earnings returned to shareholders in the form of dividends. In fact, the best scenario for a 401K is absolutely no growth in price.. all dividends.. until the day you retire.. upon which all the growth in price occurs. This gives you the best dollar cost averaged rate of return. NOTE: Even someone you quote later (Suzy Orman) supports 401Ks. I don’t support her justification on how you should limit your contribs to matching only. That discussion is a long and complicated one. The answer really is… it depends. Suzy Orman grossly oversimplifies things.. though considering her target audience, it makes sense.

the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
Essentially correct, but their manipulation is not that transparent. Best path is to ignore the talking heads that tell you to buy one stock and sell another.. only to reverse their decisions next month. The financial markets are paid for transactions. The manipulation of the stocks can actually work to your advantage. Look for when the manipulation pushes down the price of a good company with good earnings. A good quote: be fearful when others are greedy, be greedy when others are fearful – Warren Buffett, no relation to Jimmy.

401k’s are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
Not really. The growth also occurs on the amount that got deferred (which would have gone to the taxman). Later changes to tax law can also change taxation on other sources… including Roths. Nothing is really secure… just do the best possible. To outrun a Bear, you don’t have to be the worlds fastest runner… just be faster than the other guy.

growth in the stock market correlates with the creation of the 401k in the early eighties.
It also correlates to the drop in interest rates. In reality, it is a poor correlation to 401Ks, but very good correlation to interest rates. Most people do not exercise the 401K options (verified by the HR at my company and company of previous employment).

1) have children who are smart, educated, skilled and wont dump me into a gutter (the 401c plan; have 401 children)
Good luck. With the examples that the media is presenting.. I would not bet on being out of the gutter. Even your Suzi Orman quote references to not being a burden to your children in later life.

2) be independently wealthy either through size of bankroll or moving to singapore.
Singapore is not that cheap. Korea is getting expensive too. Thailand is still on the cheap side as well as Cambodia and Vietnam. So is Alaska(but man is it cold) While you are holding cash and trying to build the big bankroll, Bernanke and inflation is making each dollar worth less and less while other currencies are getting stronger.

3) die young. 65 is pretty young these days…
Well there is always that…

[ucodegen]

I was hoping for a response to my questions for Newblet, but I have heard nothing.

Since I have heard nothing, I’m going to respond to some statements:

@drunkle
401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
Incorrect. Social Security is a Ponzi scheme, but 401ks are not. In Social Security, incoming payments are paying the retiring, with a small gain from from the special issue treasuries that the Social Security Trust fund buys from the Fed (which then allows congress to borrow from the trust fund while paying that interest back to the Social Security Trust Fund). 401Ks allow one to buy stock, treasuries or to hold it in a money market(depending upon what your employer offers). Stock earnings are based upon growth of companies and earnings returned to shareholders in the form of dividends. In fact, the best scenario for a 401K is absolutely no growth in price.. all dividends.. until the day you retire.. upon which all the growth in price occurs. This gives you the best dollar cost averaged rate of return. NOTE: Even someone you quote later (Suzy Orman) supports 401Ks. I don’t support her justification on how you should limit your contribs to matching only. That discussion is a long and complicated one. The answer really is… it depends. Suzy Orman grossly oversimplifies things.. though considering her target audience, it makes sense.

the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
Essentially correct, but their manipulation is not that transparent. Best path is to ignore the talking heads that tell you to buy one stock and sell another.. only to reverse their decisions next month. The financial markets are paid for transactions. The manipulation of the stocks can actually work to your advantage. Look for when the manipulation pushes down the price of a good company with good earnings. A good quote: be fearful when others are greedy, be greedy when others are fearful – Warren Buffett, no relation to Jimmy.

401k’s are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
Not really. The growth also occurs on the amount that got deferred (which would have gone to the taxman). Later changes to tax law can also change taxation on other sources… including Roths. Nothing is really secure… just do the best possible. To outrun a Bear, you don’t have to be the worlds fastest runner… just be faster than the other guy.

growth in the stock market correlates with the creation of the 401k in the early eighties.
It also correlates to the drop in interest rates. In reality, it is a poor correlation to 401Ks, but very good correlation to interest rates. Most people do not exercise the 401K options (verified by the HR at my company and company of previous employment).

1) have children who are smart, educated, skilled and wont dump me into a gutter (the 401c plan; have 401 children)
Good luck. With the examples that the media is presenting.. I would not bet on being out of the gutter. Even your Suzi Orman quote references to not being a burden to your children in later life.

2) be independently wealthy either through size of bankroll or moving to singapore.
Singapore is not that cheap. Korea is getting expensive too. Thailand is still on the cheap side as well as Cambodia and Vietnam. So is Alaska(but man is it cold) While you are holding cash and trying to build the big bankroll, Bernanke and inflation is making each dollar worth less and less while other currencies are getting stronger.

3) die young. 65 is pretty young these days…
Well there is always that…

[ucodegen]

I was hoping for a response to my questions for Newblet, but I have heard nothing.

Since I have heard nothing, I’m going to respond to some statements:

@drunkle
401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
Incorrect. Social Security is a Ponzi scheme, but 401ks are not. In Social Security, incoming payments are paying the retiring, with a small gain from from the special issue treasuries that the Social Security Trust fund buys from the Fed (which then allows congress to borrow from the trust fund while paying that interest back to the Social Security Trust Fund). 401Ks allow one to buy stock, treasuries or to hold it in a money market(depending upon what your employer offers). Stock earnings are based upon growth of companies and earnings returned to shareholders in the form of dividends. In fact, the best scenario for a 401K is absolutely no growth in price.. all dividends.. until the day you retire.. upon which all the growth in price occurs. This gives you the best dollar cost averaged rate of return. NOTE: Even someone you quote later (Suzy Orman) supports 401Ks. I don’t support her justification on how you should limit your contribs to matching only. That discussion is a long and complicated one. The answer really is… it depends. Suzy Orman grossly oversimplifies things.. though considering her target audience, it makes sense.

the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
Essentially correct, but their manipulation is not that transparent. Best path is to ignore the talking heads that tell you to buy one stock and sell another.. only to reverse their decisions next month. The financial markets are paid for transactions. The manipulation of the stocks can actually work to your advantage. Look for when the manipulation pushes down the price of a good company with good earnings. A good quote: be fearful when others are greedy, be greedy when others are fearful – Warren Buffett, no relation to Jimmy.

401k’s are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
Not really. The growth also occurs on the amount that got deferred (which would have gone to the taxman). Later changes to tax law can also change taxation on other sources… including Roths. Nothing is really secure… just do the best possible. To outrun a Bear, you don’t have to be the worlds fastest runner… just be faster than the other guy.

growth in the stock market correlates with the creation of the 401k in the early eighties.
It also correlates to the drop in interest rates. In reality, it is a poor correlation to 401Ks, but very good correlation to interest rates. Most people do not exercise the 401K options (verified by the HR at my company and company of previous employment).

1) have children who are smart, educated, skilled and wont dump me into a gutter (the 401c plan; have 401 children)
Good luck. With the examples that the media is presenting.. I would not bet on being out of the gutter. Even your Suzi Orman quote references to not being a burden to your children in later life.

2) be independently wealthy either through size of bankroll or moving to singapore.
Singapore is not that cheap. Korea is getting expensive too. Thailand is still on the cheap side as well as Cambodia and Vietnam. So is Alaska(but man is it cold) While you are holding cash and trying to build the big bankroll, Bernanke and inflation is making each dollar worth less and less while other currencies are getting stronger.

3) die young. 65 is pretty young these days…
Well there is always that…

[VanMorrisonFan]

Hello Newblet…

You are getting plenty of advice, but I still want to throw in my $0.02 worth.

This is an “international” fund which invests almost exclusively outside the United States. As part of a diversified investment portfolio it might be a good buy, but I would not put all my money in this fund.

This fund has a decent track record, especially over the long haul. What concerns me a little is that it’s overall expense ratio is a little high – over 1.2%. That might not sound like a lot, but that adds up over time.

You don’t say how old you are, so it’s hard to say what your “time horizon” and “risk tolerance” are. I would build a diversified investment portfolio with most of your dough in stocks but some in bonds. Conservatively managed bond funds tend to even out portfolio performance over the long run. You don’t make as much in the good times, but you don’t lose as much in the bad times. Rebalance your portfolio every year or so.

You might want to look into index fund investing. It’s much cheaper (expense loads can be as little as 0.15 % of net asset value vs. the 1.20% that this fund charges).

I wish you success!

[VanMorrisonFan]

Hello Newblet…

You are getting plenty of advice, but I still want to throw in my $0.02 worth.

This is an “international” fund which invests almost exclusively outside the United States. As part of a diversified investment portfolio it might be a good buy, but I would not put all my money in this fund.

This fund has a decent track record, especially over the long haul. What concerns me a little is that it’s overall expense ratio is a little high – over 1.2%. That might not sound like a lot, but that adds up over time.

You don’t say how old you are, so it’s hard to say what your “time horizon” and “risk tolerance” are. I would build a diversified investment portfolio with most of your dough in stocks but some in bonds. Conservatively managed bond funds tend to even out portfolio performance over the long run. You don’t make as much in the good times, but you don’t lose as much in the bad times. Rebalance your portfolio every year or so.

You might want to look into index fund investing. It’s much cheaper (expense loads can be as little as 0.15 % of net asset value vs. the 1.20% that this fund charges).

I wish you success!

[VanMorrisonFan]

Hello Newblet…

You are getting plenty of advice, but I still want to throw in my $0.02 worth.

This is an “international” fund which invests almost exclusively outside the United States. As part of a diversified investment portfolio it might be a good buy, but I would not put all my money in this fund.

This fund has a decent track record, especially over the long haul. What concerns me a little is that it’s overall expense ratio is a little high – over 1.2%. That might not sound like a lot, but that adds up over time.

You don’t say how old you are, so it’s hard to say what your “time horizon” and “risk tolerance” are. I would build a diversified investment portfolio with most of your dough in stocks but some in bonds. Conservatively managed bond funds tend to even out portfolio performance over the long run. You don’t make as much in the good times, but you don’t lose as much in the bad times. Rebalance your portfolio every year or so.

You might want to look into index fund investing. It’s much cheaper (expense loads can be as little as 0.15 % of net asset value vs. the 1.20% that this fund charges).

I wish you success!

[Author]

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