Search found 17 matches

by baseballcb95
Sun Feb 17, 2013 10:32 pm
Forum: Personal Investments
Topic: ~15K to start portfolio, suggestions?
Replies: 4
Views: 776

Re: ~15K to start portfolio, suggestions?

bump, thank you guys, just looking for a couple other views.
by baseballcb95
Sun Feb 17, 2013 11:53 am
Forum: Personal Investments
Topic: ~15K to start portfolio, suggestions?
Replies: 4
Views: 776

~15K to start portfolio, suggestions?

Hey Bogleheads, I currenly have a "net worth" of about $28,500. I am 17 years old with no debt, no montly obligations, and a sufficient college fund. The net worth is just a combintion of different investments that have been set up for me, that I set up for myself, and cash. Roth IRA - Maxed for 2012, not much expected income in 2013 Vanguard Target Retirement 2055 (VFFVX)- .18 ER 2012 contribution- $4,700.00 Current Value- $4,935.91 Taxable Accounts - All of these were started for me a while ago Putnam Multi-Cap Growth Fund A (PNOPX)- 1.15 ER Current Value- $6,364.44 Putnam Voyager Fund A (PVOYX)- 1.07 ER Current Value- $3,281.52 Franklin Small-Mid Cap Growth Fund A (FRSGX)- .99 ER Current Value- $3,891.12 Cash Checking+Savings V...
by baseballcb95
Tue Feb 05, 2013 1:35 pm
Forum: Personal Investments
Topic: Modified Adjusted Gross Income?
Replies: 14
Views: 2811

Re: Modified Adjusted Gross Income?

Thanks for the quick replies.. Hopefully I can get a few more to be sure but you guys seem right and it was my gut instinct anyways.
by baseballcb95
Tue Feb 05, 2013 1:19 pm
Forum: Personal Investments
Topic: Modified Adjusted Gross Income?
Replies: 14
Views: 2811

Re: Modified Adjusted Gross Income?

kupo wrote:You have until April to contribute $5,000 post-tax.. so keep contributing until you've maxed out that 5k! Wish I could've started at 17...
I think you misunderstood or I wasn't clear... As I understand it, I can contribute $5,000 or as much money as I make up until $5,000 for the 2012 tax year before I file my taxes. My income for 2012 is set in stone and it is less than $5,000. I will contribute as much as I can for 2013 as well but that is not what I am worried about. I want to know what the maximum I can contribute for 2012 based on those 3 different numbers in my original post.
by baseballcb95
Tue Feb 05, 2013 12:46 pm
Forum: Personal Investments
Topic: Modified Adjusted Gross Income?
Replies: 14
Views: 2811

Modified Adjusted Gross Income?

Hey, quick question everyone..

I am 17 years old and trying to max out my IRA (for as much as I can given my earnings)... If I made $4,713.79 in 2012 before taxes, can I contribute that full amount to my roth IRA? I already put 4,000 in but I closed out a few other things and have extra money I would like to add to it. My net pay for the year is $4,183.42 but I will be getting some income tax refunded (200-300$) after filing my taxes.

I would like to know the max that i can contribute for 2012...

A) $4,713.79 (The full amount I made without taking out taxes)

B) $4,183.42 (My pre filing tax take home pay (includes SS, Medicare and Income))

C) ~$4,400.00 (My post filing tax pay (includes SS and Medicare)

THANKS
by baseballcb95
Mon Jan 28, 2013 11:19 pm
Forum: Personal Investments
Topic: Implications of closing out an account?
Replies: 10
Views: 1446

Re: Implications of closing out an account?

damjam wrote:FinancialDave is correct. However you should keep in mind that if you fall into the 10% or 15% federal tax brackets there is 0% federal capital gains tax owed on long-term capital gains. If you are in a higher bracket long-term capital gains are taxed at 15% on the federal level. Short-term capital gains are taxed at your marginal tax rate on the federal level. I don't know the laws in every state, you'll have to look that up.

Edited for clarification.
So as long as I made less than $36,250 my concern is irrelevant? :happy
by baseballcb95
Mon Jan 28, 2013 10:52 pm
Forum: Personal Investments
Topic: Implications of closing out an account?
Replies: 10
Views: 1446

Implications of closing out an account?

Hey,

I have a fund that was started for me a while ago, I am turning 18 soon and finally getting into investing. The fund is just awful, it has a 1.3+% expense ratio and is not diversified at all. I have just over $5,000 in the fund with New york Life investments and would like to reinvest this into some vanguard funds. By closing out the account (not an ira), and reinvesting that money with vanguard, do I face any tax implications? I already maxed out what I can contribut to my Roth IRA for this year for what its worth.
by baseballcb95
Wed Jan 23, 2013 11:16 am
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Re: Income Portfolio Questions

I think the Vanguard Total Stock Market Index Admiral shares is the way to go (VTSAX). This is much safer, and IMO will end up being a much larger nest egg for you. NO, you do not have to build up the dividend payers over time. I just retired last year, and what I did was over the last year or two sell out of enough of my existing stocks and funds to create a portfolio of 20 dividend payers that supports my income needs. The rest is left to grow in the index funds in case I should need it later. Retiring at 50 is an admirable plan, but don't get set on this - as most IRA or 401k money cannot be accessed until 55 or 59 1/2. Also if you are using a taxable account putting dividend payers in there will be pretty expensive tax-wise. Try to fun...
by baseballcb95
Tue Jan 22, 2013 9:09 pm
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Re: Income Portfolio Questions

baseballcb95 wrote: Is that fund (VTSAX) okay to hold in a taxable account?
Is the expense ration the only benefit of admiral shares?
Any help with these two questions?
by baseballcb95
Tue Jan 22, 2013 5:30 pm
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Re: Income Portfolio Questions

I think the Vanguard Total Stock Market Index Admiral shares is the way to go (VTSAX). This is much safer, and IMO will end up being a much larger nest egg for you. NO, you do not have to build up the dividend payers over time. I just retired last year, and what I did was over the last year or two sell out of enough of my existing stocks and funds to create a portfolio of 20 dividend payers that supports my income needs. The rest is left to grow in the index funds in case I should need it later. Retiring at 50 is an admirable plan, but don't get set on this - as most IRA or 401k money cannot be accessed until 55 or 59 1/2. Also if you are using a taxable account putting dividend payers in there will be pretty expensive tax-wise. Try to fun...
by baseballcb95
Mon Jan 21, 2013 10:22 pm
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Re: Income Portfolio Questions

I don't see much point in a young person investing in dividend-payers. This is the latest hot buzzword topic. You'd be better off with a diversified portfolio and adding to it over the years. You can worry about living off dividends when you have enough that it's a possibility. Brian Thank you for the response.. Wouldn't that be too late though? I mean if you want to live off dividends at say 50, you can't just put all of your money into a stock with a 3% yield at 49 and call it a day.. Don't you have to build up shares over time through a dividend reinvestment plan? I could be way off as every member on this forum is likely more knowledgable than myself.. But in a perfect world, I was thinking about this scenario: buy ~$2,000 worth of 5 d...
by baseballcb95
Mon Jan 21, 2013 3:32 pm
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Re: Income Portfolio Questions

Instead of picking five companies, I'd suggest investing in a dividend growth fund instead. Maybe something like Vanguard Dividend Growth Fund (VDIGX). Remember companies can reduce, or even suspend, a dividend with a simple board vote. Share price usually suffers when that happens. So you lose both income and capital. For a long time people thought huge bluechip stocks General Electric and General Motors would never cut their dividends. Same thing with massive banks like Citigroup. Just a few years ago during the crisis GE cut its dividend around 70%, and GM suspended its dividend on the way to bankruptcy. Citigroup still hasn't recovered from its 10-1 reverse stock split. There's a lesson for you there. Thank you for the advice.. I am no...
by baseballcb95
Mon Jan 21, 2013 3:13 pm
Forum: Personal Investments
Topic: Income Portfolio Questions
Replies: 15
Views: 1652

Income Portfolio Questions

Hey Bogleheads! I am turning 18 in a few months and have about $15,000 invested (total) in various funds that different family members have set up for me. Most havent been doing well the past few years, they have high expense ratios, and I like being in control. I plan on closing out these funds and starting an income portfolio based on dividends (to build up over 30+ years). My ultimate (and probably unrealistic) goal is to be able to live comfortably off the dividends. I currently have about ~5,000 in checking+savings, and I contributed 4,000 to my roth IRA this past year. I have a college fund set up and no monthly expenses. Now I have a couple questions that I am hoping you guys can help with: 1) Is this a good step to take? (I am not w...
by baseballcb95
Fri Jan 11, 2013 12:52 am
Forum: Personal Investments
Topic: 17 year old in need of advice!
Replies: 18
Views: 1949

Re: 17 year old in need of advice!

Thanks guys! Officially one month into my IRA!

Quick question.. How often does the Vanguard TR 2055 payout dividends? I got a dividend payment at the end of December but I am not sure if that is quarterly or yearly..

Also, what is the next step in investing? Aside from continuing to contribute to my IRA and staying debt free..
by baseballcb95
Fri Dec 07, 2012 3:47 pm
Forum: Personal Investments
Topic: 17 year old in need of advice!
Replies: 18
Views: 1949

Re: 17 year old in need of advice!

Ok, you guys have convinced me a target retirement fund is right for me..

I know as the years go up (target retirement 2020 vs 2050) there is more money allocated toward stocks, but in general does each fund carry similar/exact same stocks? For example, both the 2050 and 2055 dates have ~90% stocks, ~10% bonds. Shouldnt their performance be nearly identical or are some funds set up with better stocks?

Last question, say in 5 years my roth has ~40K. Is it both easy and cost free to split that up into other funds? Like withdrawl my money from the target fund and split it up myself (or with help) if i chose to do so?
by baseballcb95
Mon Dec 03, 2012 6:13 pm
Forum: Personal Investments
Topic: 17 year old in need of advice!
Replies: 18
Views: 1949

Re: 17 year old in need of advice!

1. If target funds are so diversified why are they still considered risky? I mean 10% bonds and 90% in tons of different u.s. and international stocks doesnt sound all that risky to me..?

2. If in fact target funds are risky investments, why have their returns been lower than a small cap value fund for example

Idk, it just feels like with target funds I am going to get a boring 4-5% return for a while, just to end up splitting it up myself later on. But that may be a good thing?

Still torn, more advice would be appreciated!
by baseballcb95
Mon Dec 03, 2012 5:35 pm
Forum: Personal Investments
Topic: 17 year old in need of advice!
Replies: 18
Views: 1949

17 year old in need of advice!

Hey everyone! I'm new here. I am familiar with investing, more so than just about any one my age at least... but I know I have a lot to learn and that i can learn a lot from you guys. So I am 17, steady job, college fund set up, and 9,000 in my checking account. I have no debt. I want to begin investing and decided I wanted to invest in an IRA because I might not have a significant source of income again until I am 22. I am going to invest $4,000 (I have earned enough this year to invest about 4,500) in a Vanguard Roth IRA, I am just unsure which funds I would like to invest in within the IRA. Most of the funds have a minimum starting balance of 3,000 but a few have a beginning balance of 1,000. So basically I could have one of each or just...