My year end goals were:
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
Thursday, August 23, 2007
Wednesday, August 15, 2007
Stock Market Snootiness
I think there may be a slight self-righteous attitude about how to deal with market swings floating around. All the "smart" pf bloggers are buying now, or wishing they could buy at the very least. Or rather, most are staying the course. While I have yet to read anyone say they are pulling out of the market, or even cutting back, I have heard some nervous chatter. This nervous chatter seems to get bombarded with comments about how perhaps the nervous poster doesn't have the stomach for the stock market.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
Monday, August 6, 2007
Cheap weekend behind, maybe more pricey ahead.
The BF's parents were in town this past weekend, and they treated us all weekend. I spent 8.50 on the Bourne Ultimatum for us before they got here, but other than that, it was on them. I enjoyed the treat, and they wouldn't have allowed us to pay for ourselves.
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Thursday, August 2, 2007
August goals
I made some pseudo-goals for July, but I see now they weren't defined well. I'm not going to report progress on them, except to note I did not reduce eating out as planned. Ah well. It'll be very low all fall, as my love will no longer be in town with me.
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
Sunday, July 29, 2007
Initial asset allocation proposal
I've done some research and came up with something I'm comfortable with.
This is what I'm thinking of:
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
This is what I'm thinking of:
| Fidelity U.S. Equity Index Commingled Pool | 55 |
| Fidelity Spartan International Index FSIIX 20% | 15 |
| Fidelity Spartan Extended Market Index FSEMX 15% | 15 |
| Morgan Stanly International EquityA, MXIQX | 5 |
| Fidelity US Bond Index FBIDX | 10 |
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
Thursday, July 26, 2007
Reallocating my 401k.... soon!
My 401k lost 100 dollars today, and my Roth about the same. However, my 401k has 3 times what my Roth does! Not that you are supposed to check your gains and losses daily, but NPR was all abuzz with news of the Dow Jones slipping, I couldn't resist.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Sunday, July 22, 2007
256% net worth increase!
I was coerced into spending a pretty penny on wine this weekend: Thirty dollars for my boyfriend and I to attend a wine tasting, and another 35 on some wine itself. Wine is an expensive hobby to get into! We have been taking a four session wine class (third class tomorrow) and have already learned a lot, and bought a lot of wine. I was rewarded with my boyfriends purchase of an entire case of wine as an early partial anniversary present.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
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Thursday, August 23, 2007
Goal check up
My year end goals were:
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
Wednesday, August 15, 2007
Stock Market Snootiness
I think there may be a slight self-righteous attitude about how to deal with market swings floating around. All the "smart" pf bloggers are buying now, or wishing they could buy at the very least. Or rather, most are staying the course. While I have yet to read anyone say they are pulling out of the market, or even cutting back, I have heard some nervous chatter. This nervous chatter seems to get bombarded with comments about how perhaps the nervous poster doesn't have the stomach for the stock market.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
Monday, August 6, 2007
Cheap weekend behind, maybe more pricey ahead.
The BF's parents were in town this past weekend, and they treated us all weekend. I spent 8.50 on the Bourne Ultimatum for us before they got here, but other than that, it was on them. I enjoyed the treat, and they wouldn't have allowed us to pay for ourselves.
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Thursday, August 2, 2007
August goals
I made some pseudo-goals for July, but I see now they weren't defined well. I'm not going to report progress on them, except to note I did not reduce eating out as planned. Ah well. It'll be very low all fall, as my love will no longer be in town with me.
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
Sunday, July 29, 2007
Initial asset allocation proposal
I've done some research and came up with something I'm comfortable with.
This is what I'm thinking of:
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
This is what I'm thinking of:
| Fidelity U.S. Equity Index Commingled Pool | 55 |
| Fidelity Spartan International Index FSIIX 20% | 15 |
| Fidelity Spartan Extended Market Index FSEMX 15% | 15 |
| Morgan Stanly International EquityA, MXIQX | 5 |
| Fidelity US Bond Index FBIDX | 10 |
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
Thursday, July 26, 2007
Reallocating my 401k.... soon!
My 401k lost 100 dollars today, and my Roth about the same. However, my 401k has 3 times what my Roth does! Not that you are supposed to check your gains and losses daily, but NPR was all abuzz with news of the Dow Jones slipping, I couldn't resist.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Sunday, July 22, 2007
256% net worth increase!
I was coerced into spending a pretty penny on wine this weekend: Thirty dollars for my boyfriend and I to attend a wine tasting, and another 35 on some wine itself. Wine is an expensive hobby to get into! We have been taking a four session wine class (third class tomorrow) and have already learned a lot, and bought a lot of wine. I was rewarded with my boyfriends purchase of an entire case of wine as an early partial anniversary present.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
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Thursday, August 23, 2007
Goal check up
My year end goals were:
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
Wednesday, August 15, 2007
Stock Market Snootiness
I think there may be a slight self-righteous attitude about how to deal with market swings floating around. All the "smart" pf bloggers are buying now, or wishing they could buy at the very least. Or rather, most are staying the course. While I have yet to read anyone say they are pulling out of the market, or even cutting back, I have heard some nervous chatter. This nervous chatter seems to get bombarded with comments about how perhaps the nervous poster doesn't have the stomach for the stock market.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
Monday, August 6, 2007
Cheap weekend behind, maybe more pricey ahead.
The BF's parents were in town this past weekend, and they treated us all weekend. I spent 8.50 on the Bourne Ultimatum for us before they got here, but other than that, it was on them. I enjoyed the treat, and they wouldn't have allowed us to pay for ourselves.
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Thursday, August 2, 2007
August goals
I made some pseudo-goals for July, but I see now they weren't defined well. I'm not going to report progress on them, except to note I did not reduce eating out as planned. Ah well. It'll be very low all fall, as my love will no longer be in town with me.
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
Sunday, July 29, 2007
Initial asset allocation proposal
I've done some research and came up with something I'm comfortable with.
This is what I'm thinking of:
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
This is what I'm thinking of:
| Fidelity U.S. Equity Index Commingled Pool | 55 |
| Fidelity Spartan International Index FSIIX 20% | 15 |
| Fidelity Spartan Extended Market Index FSEMX 15% | 15 |
| Morgan Stanly International EquityA, MXIQX | 5 |
| Fidelity US Bond Index FBIDX | 10 |
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
Thursday, July 26, 2007
Reallocating my 401k.... soon!
My 401k lost 100 dollars today, and my Roth about the same. However, my 401k has 3 times what my Roth does! Not that you are supposed to check your gains and losses daily, but NPR was all abuzz with news of the Dow Jones slipping, I couldn't resist.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Sunday, July 22, 2007
256% net worth increase!
I was coerced into spending a pretty penny on wine this weekend: Thirty dollars for my boyfriend and I to attend a wine tasting, and another 35 on some wine itself. Wine is an expensive hobby to get into! We have been taking a four session wine class (third class tomorrow) and have already learned a lot, and bought a lot of wine. I was rewarded with my boyfriends purchase of an entire case of wine as an early partial anniversary present.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
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Thursday, August 23, 2007
Goal check up
My year end goals were:
-4k in Roth
-4k towards student loan
-10-15% towards retirement (with hopes of having about 15k by end of the year)
-10k total in HYSA (starting balance, under 3k)
So far I have:
-3.7k in Roth (93% complete)
-2100 towards loan (58%)
-about 12k in 401k (currently contributing 13%)
-about 6.5k in the HYSA (65%)
I'm way ahead on the Roth IRA, on track for the my 401k, and a little behind on the other two. Percentage wise, I'm the furthest behind on the student loan repayment fund, however, it really is less than 2k to accumulate through the rest of the year. I think the hardest one will be the 10k in savings, especially since I may have to use some of that money to visit the boy by airplane when he moves. I currently automatically deposit 300 per a (bi weekly) paycheck, but even if I don't dip into it I'll come up about 1k short. I should be able to sneak a little extra in out of my year end bonus, and maybe I can make it happen!
I take distance education masters class, which are fully reimbursed by my work once complete. Last semester, I didn't want to bankrupt myself and take the 2k out of my accounts, so I paid a fee to pay in installments. This time, I paid the bill upfront with money that will go back into my student loan account. It was a good feeling, a true sign of progress
Wednesday, August 15, 2007
Stock Market Snootiness
I think there may be a slight self-righteous attitude about how to deal with market swings floating around. All the "smart" pf bloggers are buying now, or wishing they could buy at the very least. Or rather, most are staying the course. While I have yet to read anyone say they are pulling out of the market, or even cutting back, I have heard some nervous chatter. This nervous chatter seems to get bombarded with comments about how perhaps the nervous poster doesn't have the stomach for the stock market.
This is the first time I've ever been "in the market" during a dip, and it would be a lie to say that I don't notice and abhor the fact that my 401k contributions aren't even keeping it level. Of course it makes me nervous! No one likes losing money, even though I know, deep down, that I'll make money in the long run and that I'm not retiring for years and years. It is much more fun to see my accounts and net worth grow rather than stagnate!
Still, I think I am able to handle it. I'm not changing anything, and I'll keep investing as planned. Just because I'm nervous doesn't mean I am not suited for investing! It just means my net worth updates will be much less exciting to me.
I'm glad I frame my goals in terms of "contribute $x to this", so market conditions have little bearing on whether I can accomplish them!
Speaking of goals, a mid month spending checkup may be in order. I've nearly spent my "eating out" budget (don't I always!) but am on track for grocery and probably gas. I'll be buying a plane ticket soon (!) but I have been stockpiling small amounts of money in a travel fund that I can use for that, so it should be an almost transparent purchase. I haven't spent close to my budget on personal, entertainment, or clothes. Things are looking good.
Monday, August 6, 2007
Cheap weekend behind, maybe more pricey ahead.
The BF's parents were in town this past weekend, and they treated us all weekend. I spent 8.50 on the Bourne Ultimatum for us before they got here, but other than that, it was on them. I enjoyed the treat, and they wouldn't have allowed us to pay for ourselves.
Although they are much older than we are, we both went into lucrative fields and can make about as much money as our parents. With 25 years of experience nursing, I think my mom makes about the same as I do, but she can make much more when she works overtime (I'm salaried). My dad's wages fluctuate, as he is self employed, but I think he makes less than my mom.
I've found myself thinking about money more than I would like to. When we discussing my boyfriends sister, I had a strong desire to find out how much money she makes. She has a MS in accounting and CPA certification, and his mom has mentioned several times "she makes good money" and they just bought a brand new car. I went so far as to google salary data, but didn't find any solid numbers, so I gave up.
But really, who cares? I make more money than a lot of people my age. I also make less money that a lot of people my age. I think the more important thing is, I'm careful with my money. It isn't that I don't splurge on unnecessary items, but it is that I know that I'm splurging and I make sure that I believe it is worth it.
I hear a lot of buzz about how young people today aren't careful with their money, but I must run with a different crowd. Everyone I know is saving at least 8% in their 401ks. Some are taking advantage of the employee stock purchase program. I don't know anyone who carries a balance on their credit cards, and most seem savvy about things. Many friends are probably less frugal than I am, but most were lucky enough to have no student loans. Anyway, I like that my friends are starting out on the right financial foot.
Speaking of the right foot, I finally convinced the boy to get a high yield savings account, along with his first credit card! I'm so proud, and it only took me 6 months of telling him the virtues of online accounts. :)
I'm driving to see my family this weekend and riding with my sister. She asked if we could split gas, and I obliged. Part of me thinks it isn't fair because we are taking their SUV, and I'm hardly saving anything by carpooling with them. But being frugal is good, being cheap is annoying. She stays home with my nephew and I know I make more than her husband. It would be really rude of me to be a cheapskate when I know they are trying to buy a house. Besides, plane tickets were around $500 at the cheapest!
Thursday, August 2, 2007
August goals
I made some pseudo-goals for July, but I see now they weren't defined well. I'm not going to report progress on them, except to note I did not reduce eating out as planned. Ah well. It'll be very low all fall, as my love will no longer be in town with me.
1. Finish reallocating my 401k (as much as possible without incurring short term trading fees)
2. Contribute 700 to my HYSA fund. This is sort of an e-fund, but more just a general savings fun (100 more than auto deposits)
3. Keep 401k contributions at 13% and contribute the pre-planned 100 to Roth (basically a "stay on track" goal
4. Contribute $550 to the student loan payback fund.
5. Keep restaurant spending below 100 (seems easy, but it's my weakness!)
6. Study for GRE more, take it, and rock it! =) Not financial, but personal development at least.
7. Apply for 3 or more jobs and continue to update resume.
8. Work over time 2 weeks (at least 6 hours)
Wow, a lot of goals! I think they are all achievable, but still challenging enough to not be trite!
Sunday, July 29, 2007
Initial asset allocation proposal
I've done some research and came up with something I'm comfortable with.
This is what I'm thinking of:
| Fidelity U.S. Equity Index Commingled Pool | 55 |
| Fidelity Spartan International Index FSIIX 20% | 15 |
| Fidelity Spartan Extended Market Index FSEMX 15% | 15 |
| Morgan Stanly International EquityA, MXIQX | 5 |
| Fidelity US Bond Index FBIDX | 10 |
It is quite loosely based on this article from kiplinger, however I don't have access to an emerging markets fund in my 401k, and I thought that having nothing in bonds was a bit risky for my preference.
I'm 24, so a long way from retirement and I don't mind some risk. Am I missing an important asset allocation? I do have access to a variety of other funds, which I will list here in a word vomit fasion: Fidelity target date funds, Low priced stock, blue chip growth, capital and income, dividend growth baron growth, Wells fargo mid cap, Alliaz small cap, diversified international, equity income...
Does my asset allocation seem sensible? Any glaring mistakes? Anything I need to look into in more detail?
Thanks for any feedback!
Thursday, July 26, 2007
Reallocating my 401k.... soon!
My 401k lost 100 dollars today, and my Roth about the same. However, my 401k has 3 times what my Roth does! Not that you are supposed to check your gains and losses daily, but NPR was all abuzz with news of the Dow Jones slipping, I couldn't resist.
Oh, who am I kidding, I check almost everyday. But I remain level headed. Really, I do.
Still, I have been planning to reallocate my 401k for several days now, after realizing how little I knew when I made the choices I did. I still don't know that much, but now I am ready to learn.
I am a big fan of buy and hold, of picking some asset classes and rebalancing about yearly. But buy and hold does assume that the original choices were well thought out! Were mine? No they were not. Over the next week r so, I'm going to investigate where my 401k money is going, and where it should be going, and figure out an approach on how to get it where I want it to be.
My Roth IRA is secondary for three reasons. First, it has less money by about 1/3. Second, it is in a target date fund for 2040, and I'm fairly comfortable with that. Third, the choices there are infinite (!), and it seems like a harder fish to fry! Though I heard a rumor that Vanguard's target date funds had a much lower expense than Fidelity, my current broker. I must investigate switching in the future.
First things first, where is my 401k money invested? Last night I made a new tab in my finance spreadsheet for investments. Now that I've done it, I'm shocked that tab never existed before! There are some fees and expenses that I have never (not even once) glanced at, and honestly, I have no solid logic for picking the asset classes I did. I'm almost embarrassed to post them, actually, but here they are. I realized I had a whopping 5% in a stable value fund! I do not mean a bond, I mean stable value, with a goal to make $1 always worth $1. Oh my.
45% Fidelity Freedom 2040 FFFFX
15% Fidelity US Bond Idx FBIDX
15% Fidelity Mid Cap Stock FMCSX
10% MIS Intl equity A MXIQX
5% Fidelity Equity Income FEQIX
5% Fid Mip II CL2 (no ticker, stable value)
5% My company stock (does pretty well, mainly here
because that's where employer contributions go automatically)
With 15% bonds and 5% stable, no wonder it held value better than my Roth. Still, i'm 24, I don't think it is the wisest choice. And the Equity Income fund? It invests in large cap "income" funds. What does that even mean? As a young investor, is an income fund something I should be interested in? These are questions I need to answer.
The next step is research. Thus far, I've been looking into the "Lazy Portfolio" theory. Realistically, my 401k options are limited, so I can't just pick what I want. I know i want to put a portion of my money into the index funds. I also will use some mutual funds to get my hands on some other asset classes. But I don't know which asset classes I need.
I'm not ready to reallocate yet.
Sunday, July 22, 2007
256% net worth increase!
I was coerced into spending a pretty penny on wine this weekend: Thirty dollars for my boyfriend and I to attend a wine tasting, and another 35 on some wine itself. Wine is an expensive hobby to get into! We have been taking a four session wine class (third class tomorrow) and have already learned a lot, and bought a lot of wine. I was rewarded with my boyfriends purchase of an entire case of wine as an early partial anniversary present.
Usually, my boyfriend is quite frugal, so I was slightly surprised at the purchase. We have fairly similar spending habits, and generally encourage one another to be mindful of our spending on unnecessary things. We don't live like paupers, but we are conscious of money going in and out.
From June to July, Yodlee reports an astounding 256.52% increase in net worth! Of course, this is because I started out June in the negatives, and now am safely in the positive zone. Also, august is a 3-paycheck month, so I should be able to dump a extra into savings then.
I'm toying with the idea of opening a CD to get a little more bang for my buck, but with my future being unknown (I will be seeking a new job, anticipating starting in January or February), I want to keep my money liquid.
My financial goals shall remain unchanged, and I am focusing on my next goals of finding a good job. I've done some initial searches and while it might be a little work, I should be ok.
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