Mutual funds
5 Reasons Why You Should Open A 529 Account Right Now
My wife and I are both grad students, currently without any children. Even so, I recently opened 529 plans through Learning Quest (Kansas). What is a 529 plan? Essentially, it is a tax-advantaged account meant for future expenses related to higher education.
I’m embarrassed to admit that I thought you could only open 529 plans after [...]
Checking Your Long-Term Investments Every Day - A Horrifically-Bad Habit
A wise friend once told me when I first decided to buy mutual funds:
Just stick money in the fund(s) and FORGET ABOUT IT. Resist the urge to log in and check it every day. You’ll only give yourself ulcers!
I think it’s terrific… fantastic… nay, stupendous advice! There is just one problem:
I have not been following [...]
Opening a Roth IRA on a Budget
A reader recently asked me about starting a Roth IRA with a minimal opening amount (less than $500), and I think it’s a good question. Most of the major companies expect you to have a substantial initial investment (usually 2-3k), so what can someone who doesn’t have that much do?
It doesn’t seem fair to indirectly [...]
Fed Cuts Rate Again, and I Don’t Care
Earlier this week the Fed slashed the Funds Rate another 0.25%., which means that savings account rates nationwide will undoubtedly begin another session of racing toward absolute zero. ING Direct seems to be leading pack, as their rate just dropped down to 4.2% APY.
Guess what? I don’t care. Ever since I simplified my setup, more [...]
Vanguard Simplifies Account Fees
Effective 26 April 2007, Vanguard is changing its fee structure. It used to be that Vanguard charged “small” accounts an extra $10 per year. For example:
Old fee structure
$10 per year for each index fund with less than $3,000 invested
$10 per year for any fund with less than $2,500
$10 per year for an IRA with less [...]
Mutual Fund Basics - Initial Decisions and Advice
This is the second part of my series on mutual fund basics. Don’t miss Part I on Making the Plunge.
Preliminaries
If you hear the word “savings,” what images pop into your head? If you’re like most people, you probably think of banks, people in suits, or you get a shiver of anxiety realizing that you [...]
My Current Retirement Fund of Choice
Vanguard Target Retirement 2045 Fund (VTIVX)
As I mentioned previously, I recently moved my Roth IRA from American Funds to Vanguard. When I transfered, I placed all my money in the Vanguard STAR Fund (VGSTX) initially, which only requires a $1,000 minimum. Recently I contributed enough money to break the $5,000 mark, and this was my [...]
Mutual Fund Basics - Making the Plunge
So, you’ve heard about mutual funds, but the plethora of companies and funds is enough to leave your head spinning? That sounds familiar, for that was me not too long ago.
Mutual funds can be an intimidating investment for the beginning investor, especially for the type of person who seeks safety in banks. Just last [...]
Roth IRA Transfer
Today I transferred my Roth IRA from American Funds to Vanguard. Why, you ask? It’s simple. There is not much money in it, but the idea of paying a “load” sickened me.
What is a “loaded” mutual fund?
A “loaded” mutual fund is one in which you pay a percentage of your investment as a commission [...]
