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Category: Investing

Good posts on why bonds are important in a portfolio

Good posts on why bonds are important in a portfolio

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If you’ve been following my blog lately you’ve been noticing that I’ve been questioning why one would ever have any money in bonds in the long-term due to their sub-par performance vs. stocks. I’ve had tons of great comments and I thought I even summarized things pretty good, but in the end I don’t know that I really had it nailed down. I was still able to shoot my mouth off somewhat about how in the long-term stocks are still the best investment and I really kind of wanted someone to stick my foot in my mouth, well maybe not that harsh but there are two great posts about why bonds are a vital part of an investment portfolio.

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Asset Allocation – If you are young why wouldn’t you be 100% stocks – Comments and Recap

Asset Allocation – If you are young why wouldn’t you be 100% stocks – Comments and Recap

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Well turns out that me suggesting that young people with long investing time horizons invest 100% in stocks sturred up a lot of activity on my blog and to be honest I never could have imagined I would have gotten so many high quality comments on this post. I’ve learned a lot in the process (I think) and I figured it would do good to sort of recap the comments from the other post and give a general idea of what my readers thought (or at least my convoluted interpretation of their thoughts).

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Asset Allocation – If you are young why wouldn’t you be 100% stocks?

Asset Allocation – If you are young why wouldn’t you be 100% stocks?

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I know I have had a few people comment on some of my posts that I’m too heavily weighted towards stocks (100%) and it’s sort of common knowledge that when laying out your asset allocation in your portfolio that it is a mixture of stocks and bonds. Even most lifestyle funds for the most risky aggressive young punk classification have some money in bonds. For some reason I can’t get it through my thick skull why someone would put any money in a historically lower performing investment tool for money that won’t be touched for 30 or more years.

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What kind of car do you drive and why?

What kind of car do you drive and why?

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I am curious to see what kind of vehicles my readers drive and why they drive the vehicles that they do. Purchasing a vehicle is usually a pretty major decision/expense and depending upon what kind vehicle you buy, how you pay for it (cash, credit), and how you maintain your vehicle can really affect your overall financial picture.

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Retirement Nestegg – Tax Liability Percentage

Retirement Nestegg – Tax Liability Percentage

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I just thought of something that I think would be fun to track as it will make sure I don’t overestimate how big my retirement nest egg really is. I currently have a mix of Roth IRA, Roth 401k, and Traditional 401k retirement accounts that combined together give me that number at the top right corner of my blog. One thing that people often forget when saving for retirement is taxes (the other is inflation). You see any money that is stored in traditional 401k or traditional IRAs you need to pay taxes on when you withdraw it. This means that the government actually owns part of my retirement nestegg.

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401k contribution limits (2006-2009)

401k contribution limits (2006-2009)

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I always find myself looking for these limits so I figured I’d just put them on my site for a point of reference. Below are the maximum contribution limits for 401k plans each year from now through 2009.

Year Maximum contribution limit
2006 $15,000
2007 $15,500
2008 $15,500
2009 $?????
Realistic Rate of Return – Part IV Inflation

Realistic Rate of Return – Part IV Inflation

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This is the fourth post in a series of posts on Realistic Rate of Return. You can view Part I, Part II, and Part III here. In this part I will try to touch on inflation and how it can affect my nest egg’s value as we travel through time. Sorry for the small delay between Part III and Part IV as this post has been sitting in my drafts folder 60% done for oh the last 9 months 😉

What got me going was that I it was pointed out that I did not consider taxes and inflation in posts like this. While the original post was suppose to be more motivational than scientific it did bring up a good point that I have not talked too much about taxes and inflation on my blog and what do you know I had an article on inflation half done in my drafts folder so here you go.
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