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MadeInTaiwan
Participant[quote=sd_bear]stockstradr,
unfortunately im 26, 5k is 20% of my retirement portfolio. i know you deal with stocks all day but i don’t have the time, the patience, or the stomach to watch the wild swings and try to make a quick buck. i do appreciate the advice but i can’t commit to strategy’s like that right now.
i haven’t turned my back on stocks overall. ive had indexes since i was a kid, which is where the majority of my money has been, but for the retirement portion of my assets i was looking to be a bit more conservative in this climate and did not want to dedicate hours each day to manage it.[/quote]
Since this is your retirement investment and you’re 26, an you don’t have time, stomach, or patience to pick stocks, then stay with index funds. I think putting the $5K in a Vanguard Money market and then cost average into index fund(s) is a great idea. For tax year 2009, you can set up automatic contributions monthly/bi-monthly into your Roth account. Just divide your 5K into 12 or 24 installments. That’s what I’ve been doing for the last four five years. You won’t even miss the money.
Again, this advice is only for people like me who have a looong horizon, don’t have time to do too much research, and don’t have stomach for riding individual or even sector picks.
Participant[quote=sd_bear]stockstradr,
unfortunately im 26, 5k is 20% of my retirement portfolio. i know you deal with stocks all day but i don’t have the time, the patience, or the stomach to watch the wild swings and try to make a quick buck. i do appreciate the advice but i can’t commit to strategy’s like that right now.
i haven’t turned my back on stocks overall. ive had indexes since i was a kid, which is where the majority of my money has been, but for the retirement portion of my assets i was looking to be a bit more conservative in this climate and did not want to dedicate hours each day to manage it.[/quote]
Since this is your retirement investment and you’re 26, an you don’t have time, stomach, or patience to pick stocks, then stay with index funds. I think putting the $5K in a Vanguard Money market and then cost average into index fund(s) is a great idea. For tax year 2009, you can set up automatic contributions monthly/bi-monthly into your Roth account. Just divide your 5K into 12 or 24 installments. That’s what I’ve been doing for the last four five years. You won’t even miss the money.
Again, this advice is only for people like me who have a looong horizon, don’t have time to do too much research, and don’t have stomach for riding individual or even sector picks.
Participant[quote=sd_bear]stockstradr,
unfortunately im 26, 5k is 20% of my retirement portfolio. i know you deal with stocks all day but i don’t have the time, the patience, or the stomach to watch the wild swings and try to make a quick buck. i do appreciate the advice but i can’t commit to strategy’s like that right now.
i haven’t turned my back on stocks overall. ive had indexes since i was a kid, which is where the majority of my money has been, but for the retirement portion of my assets i was looking to be a bit more conservative in this climate and did not want to dedicate hours each day to manage it.[/quote]
Since this is your retirement investment and you’re 26, an you don’t have time, stomach, or patience to pick stocks, then stay with index funds. I think putting the $5K in a Vanguard Money market and then cost average into index fund(s) is a great idea. For tax year 2009, you can set up automatic contributions monthly/bi-monthly into your Roth account. Just divide your 5K into 12 or 24 installments. That’s what I’ve been doing for the last four five years. You won’t even miss the money.
Again, this advice is only for people like me who have a looong horizon, don’t have time to do too much research, and don’t have stomach for riding individual or even sector picks.
Participant[quote=sd_bear]stockstradr,
unfortunately im 26, 5k is 20% of my retirement portfolio. i know you deal with stocks all day but i don’t have the time, the patience, or the stomach to watch the wild swings and try to make a quick buck. i do appreciate the advice but i can’t commit to strategy’s like that right now.
i haven’t turned my back on stocks overall. ive had indexes since i was a kid, which is where the majority of my money has been, but for the retirement portion of my assets i was looking to be a bit more conservative in this climate and did not want to dedicate hours each day to manage it.[/quote]
Since this is your retirement investment and you’re 26, an you don’t have time, stomach, or patience to pick stocks, then stay with index funds. I think putting the $5K in a Vanguard Money market and then cost average into index fund(s) is a great idea. For tax year 2009, you can set up automatic contributions monthly/bi-monthly into your Roth account. Just divide your 5K into 12 or 24 installments. That’s what I’ve been doing for the last four five years. You won’t even miss the money.
Again, this advice is only for people like me who have a looong horizon, don’t have time to do too much research, and don’t have stomach for riding individual or even sector picks.
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
Participant[quote=stockstradr]…
Where’s MY handout! I need to figure out a way to get my family on the gravy train![/quote]
Are you serious? Most people on food stamp are on it temporarily, and only because they do need it. I suppose they should stop eating. Besides, you wouldn’t want the food allotment required by food stamps anyways. You do realize the welfare queen driving a Cadi was made up by Reagan…
Participant[quote=stockstradr]…
Where’s MY handout! I need to figure out a way to get my family on the gravy train![/quote]
Are you serious? Most people on food stamp are on it temporarily, and only because they do need it. I suppose they should stop eating. Besides, you wouldn’t want the food allotment required by food stamps anyways. You do realize the welfare queen driving a Cadi was made up by Reagan…
Participant[quote=stockstradr]…
Where’s MY handout! I need to figure out a way to get my family on the gravy train![/quote]
Are you serious? Most people on food stamp are on it temporarily, and only because they do need it. I suppose they should stop eating. Besides, you wouldn’t want the food allotment required by food stamps anyways. You do realize the welfare queen driving a Cadi was made up by Reagan…
Participant[quote=stockstradr]…
Where’s MY handout! I need to figure out a way to get my family on the gravy train![/quote]
Are you serious? Most people on food stamp are on it temporarily, and only because they do need it. I suppose they should stop eating. Besides, you wouldn’t want the food allotment required by food stamps anyways. You do realize the welfare queen driving a Cadi was made up by Reagan…
Participant[quote=stockstradr]…
Where’s MY handout! I need to figure out a way to get my family on the gravy train![/quote]
Are you serious? Most people on food stamp are on it temporarily, and only because they do need it. I suppose they should stop eating. Besides, you wouldn’t want the food allotment required by food stamps anyways. You do realize the welfare queen driving a Cadi was made up by Reagan…
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