Search found 14 matches

by betashmeta
Thu Jan 24, 2013 10:43 am
Forum: Personal Investments
Topic: Kicking off 401k - Help with fine tuning
Replies: 8
Views: 1260

Re: Kicking off 401k - Help with fine tuning

I think total international allocation of 30% is OK but I wouldn't go much lower than that. You're looking at 25% equity plus 5% REIT plus 5% Bonds, which I suppose is OK. I don't know what your international equity options are but just make sure you remain diversified in those holdings. I try to mi...
by betashmeta
Wed Jan 23, 2013 7:59 pm
Forum: Personal Investments
Topic: Kicking off 401k - Help with fine tuning
Replies: 8
Views: 1260

Re: Kicking off 401k - Help with fine tuning

I may be stating the obvious here, but if you don't have a significant chunk of your portfolio invested in international funds, you are effectively betting that the U.S. economy will outperform all the other economies of the world in the long run.
by betashmeta
Tue Jan 22, 2013 6:10 pm
Forum: Personal Investments
Topic: Figuring out what to do... [Physician]
Replies: 8
Views: 1178

Re: Figuring out what to do... [Physician]

A couple things: 1. If taxes are a primary concern, I would favor tax-deductible accounts. (regular IRA over roth). 2. You might want to consider incorporating your side business, perhaps as an S-Corp. The ongoing costs are relatively low ($800/year AMT in California), plus some financial paperwork....
by betashmeta
Mon Jan 21, 2013 7:08 pm
Forum: Personal Investments
Topic: Roth 401K Confusion
Replies: 11
Views: 1134

Re: Roth 401K Confusion

My marginal income rate is 28% but on account of my recent marriage I may have dropped to 25% for 2012. However, about 20% of my AGI is bonus and faces supplemental taxes, so my actual tax rate is a bit higher. In the future, my taxes may actually go down (starting business) because I will be able ...
by betashmeta
Mon Jan 21, 2013 7:04 pm
Forum: Personal Investments
Topic: Follow up investment advice
Replies: 4
Views: 546

Re: Follow up investment advice

I would consider adding a small cap index or a small/mid cap value fund and a large cap, perhaps the index 500. Also, while I like the Vanguard total index, I enjoy holding a large, medium, and small cap funds separately as well. If you have the total market index plus a mid-cap fund, you're sort of...
by betashmeta
Mon Jan 21, 2013 6:53 pm
Forum: Personal Investments
Topic: Roth 401K Confusion
Replies: 11
Views: 1134

Re: Roth 401K Confusion

my temptation is to put as much into the Roth 401K as possible. I guess one big difference is that I wouldn't be able to contribute nearly as much money into the Roth 401K on account of the taxes. Well, you just answered your own question. Here is how someone else might answer it. My employer will ...
by betashmeta
Mon Jan 21, 2013 6:45 pm
Forum: Personal Investments
Topic: Roth 401K Confusion
Replies: 11
Views: 1134

Re: Roth 401K Confusion

My marginal income rate is 28% but on account of my recent marriage I may have dropped to 25% for 2012. However, about 20% of my AGI is bonus and faces supplemental taxes, so my actual tax rate is a bit higher. In the future, my taxes may actually go down (starting business) because I will be able t...
by betashmeta
Mon Jan 21, 2013 6:04 pm
Forum: Personal Investments
Topic: Roth 401K Confusion
Replies: 11
Views: 1134

Re: Roth 401K Confusion

Would you mind saying what about my specific situation might affect the decision?
by betashmeta
Mon Jan 21, 2013 6:03 pm
Forum: Personal Investments
Topic: Asset Allocation Uncertainty
Replies: 5
Views: 595

Re: Asset Allocation Uncertainty

I think you're thinking about bonds the wrong way, and it sounds like you're confusing volatility with beta. The reason most people diversify with bonds is to decrease volatility in their portfolio. Volatility is not the same as beta/correlation with the market. Bonds are less volatile than stocks (...
by betashmeta
Mon Jan 21, 2013 5:41 pm
Forum: Personal Investments
Topic: Roth 401K Confusion
Replies: 11
Views: 1134

Roth 401K Confusion

I recently noticed that I am able to make after-tax contributions into a roth 401K. My 25% match applies to both the roth and regular plans. I feel like this should be straightforward just like comparing an IRA vs a Roth IRA, but for some reason I'm finding it perplexing. Notwithstanding making regu...
by betashmeta
Mon Dec 31, 2012 10:18 pm
Forum: Personal Investments
Topic: Portfolio advice for 30yr old married couple
Replies: 5
Views: 1361

Re: Portfolio advice for 30yr old married couple

1. If there is no match, why bother? Put your contributions into an IRA. Plus, those oppenheimer funds are horribly expensive in terms of fees. Not worth it. 2. Emergency funds are for emergencies. Don't touch them. 3. Hard to say without knowing what your goals and investing style are, though it se...
by betashmeta
Mon Dec 31, 2012 5:07 pm
Forum: Personal Investments
Topic: Parents need a complete financial overhaul. Need help.
Replies: 7
Views: 955

Re: Parents need a complete financial overhaul. Need help.

Definitely too little info. A couple random thoughts: Roth as much as you can. They should also be able to take advantage of catch-up contributions at that age. How much can they afford to put away each year? If they have difficulty saving cash (I know we all do), I would talk to them about recurrin...
by betashmeta
Mon Dec 31, 2012 4:50 pm
Forum: Personal Investments
Topic: Mutual Fund Diversification
Replies: 1
Views: 332

Mutual Fund Diversification

This may be a dumb question, but is there a difference in terms of diversification between holding a total market index and separately holding small, medium, and large cap indexes? If so, what is it?