Retirement Nestegg Report – May 2014

Retirement Nestegg Report – May 2014

Well nothing too exciting this month – I gained some of the lost ground to the SP500 the last few months and I made $4000 in contributions to our Roth IRA accounts. The good news is I didn’t have any five or six figure purchases this month so I feel a little bit more frugal than I did last month 🙂

Taxable Account – $5,099.04 (+2.99%)
Traditional Rollover IRA – $30,500.70 (-1.23%)
My Roth IRA – $103,334.94 (+7.92%)
Wife Roth IRA – $56,790.05 (+5.32%)
Traditional 401k – $191,961.67 (+2.52%)

Roth/Traditional % = 41.30% (tax free)

Total Retirement Nest Egg $387,686.40 (+4.01%)

Monthly Contributions $3000 (My Roth IRA) $1000 (Wife Roth IRA) $753.77 (401k)
SPY Performance +2.10%
My Monthly Investment Performance +2.74% (+0.64% vs SP500)
My Monthly Individual Stocks Performance +3.37% (+1.27% vs SP500)

  • KC

    I greatly enjoy your site! I’m a 30-yr old with a wife and two kids under the age of four. I have a little over $50K saved in two Roth IRA’s (one for me and my wife), but I’m not in love with what they’re in. A “financial adviser” helped us set up the accounts and choose the funds back when I was far less aware of things like loads and fees. I have a morning star account and can plainly see the funds I am in are not great for me as much as great for the adviser and his commissions. Long story short, I want to know the best/simplest place to put my money. I don’t have the time nor talent to pick individual stocks like you but would love a reliable and cost-effective vehicle that I can rely upon for the next 30 years or so. Any thoughts or pointers would be so appreciate.

  • MFJ

    Hi KC – sorry for the slow reply, my comment notification system is on the fritz. The best thing you can do is put your money in a Vanguard Index Fund. I can think of three off the top of my head that would work great for you.

    VFINX – Vanguard SP500 Index Fund – holds index of the biggest US companies

    VTSMX – Vanguard Total Stock Market Index fund – holds index that tries to represent the entire stock market.

    One of the Vanguard LifesStyle Funds based on your retirement age/goal. These funds basically invest in other Vanguard index funds and the best part is over time they will re-allocate automatically without you thinking – so the closer you get to retirement the more conservative they get in holding more bond index funds.

    You cannot go wrong with any of those choices – they are all no load funds with expense ratios that are of the lowest in the industry.

    To be honest one of those lifestyle funds would probably be best for you as its a complete no brainer and will set you up for success without any effort on your part. Fire the “financial advisor” and move your money over to Vanguard.

    Any other questions let me know


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