Reader Question

How to Choose Mutual Funds? Reader Question

How to Choose Mutual Funds? Reader Question

By in Advanced Investing, Asset Allocation, Bond, Investing, Mutual Funds, Reader Question | 11 comments

John, a loyal reader wants to know how to choose mutual funds. How to Choose Mutual Funds “I would like your opinion and advice on how I should allocate my investments and my daughter’s investments among mutual funds. Both our accounts are with Fidelity. I am 56 and plan to retire at 60. I have $400,000 in IRAs (Traditional and Roth). My daughter is 24 and has $65,000 in an individual acct and $50,000 in both Roth and rollover IRA. There are so many funds to choose from and I feel overwhelmed. Any suggestions would be helpful.” Too Much Fund...

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Are Bonds a Good Investment Now?

Are Bonds a Good Investment Now?

By in Advanced Investing, Asset Allocation, Bond, Investing, Reader Question | 15 comments

A reader wrote in and asked, “Why should I invest in bonds? After all, the yields are low and don’t bond values drop as interest rates rise?” I started investing in bonds in my mid 20’s and have enjoyed their dividends for years. When interest rates were high, I even received double digit bond interest (coupon) payments – can you believe that today? Understand the importance of bond investing. Learn why bonds remain a good investment today. Investing in Bonds for Beginners “Are bonds a good investment now?” is a great question. After all, bonds, typically offer lower returns...

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Speculative Investments – What Percent Should I Invest?

Speculative Investments – What Percent Should I Invest?

By in Advanced Investing, Asset Allocation, Reader Question, Stocks | 13 comments

Are Passive Investments for You? “What is your take on passive investing? If passive investing, what percentage of your portfolio would you allocate for “speculative investments”, like single tech stocks and such?” ~ Jake at I Heart Budgets asks this two part investing question. Passive Investing and Speculative Investments You don’t usually see these two topics discussed together. Passive investing is the cornerstone of John Bogle’s index fund investing platform. Backed by empirical research and millions of practitioners, one topic that’s rarely discussed with passive investing is speculation.  Well, here goes….  Passive Investing-My Take Jake asks about my take on...

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Best Asset Allocation Based On Age & Risk Tolerance

Best Asset Allocation Based On Age & Risk Tolerance

By in Advanced Investing, Asset Allocation, Investing, Reader Question | 14 comments

How To Figure Out the Best Asset Allocation For You Graham from Moneystepper asks; What metric (rule of thumb) would you recommend for asset allocation based on age and risk appetite? Choosing your best asset allocation is not as simple as it might seem. Let’s attack it from several investment angles and throw in a bit of research as well. What Is Asset Allocation?   The asset allocation decision divides total investable funds by percent into specific investment categories. An asset allocation represents the investor’s choice of broad asset classes and the percentages distributed across the categories. The two most...

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The Best Investment to Keep Pace With Inflation, Guaranteed -Part 1

The Best Investment to Keep Pace With Inflation, Guaranteed -Part 1

By in Bond, Inflation, Investing, Reader Question | 5 comments

Keep Pace With Inflation With Best Investment for Inflation Protection  “Inflation is the one form of taxation that can be imposed without legislation.” Milton Friedman In recent year’s we’ve avoided the inflation monster. As Milton Friedman, the famous economist mentioned, inflation is just like a tax and makes everything you buy more expensive!  It’s painful when the soda 12 pack you bought last year for $4.50 costs $5.50 this year. That’s the sting of inflation. But there is a safe way for your money to keep pace with inflation. I originally wrote this post several years ago, certain that...

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Roth or 401k, Which to Max Out First?

Roth or 401k, Which to Max Out First?

By in Investing, Reader Question, Retirement, Saving | 11 comments

Roth or 401k which should I max out first? asked Buck Inspire This is an excellent question, which to max out first, a 401k or Roth IRA? The easy answer, max out both the 401K and the Roth IRA! You can’t go wrong saving and investing as much as you possibly can now. What if I Can’t Max out Both My Roth IRA and 401K? In the real world we all need to make financial choices. Most investors can’t afford to max out their 401k and their IRA. So, how to allocate retirement funds is a common question. If you can...

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