If you would like to know more about investment strategies please visit our Investment Planning articles.
Showing posts with label Retirement Planning. Show all posts
Showing posts with label Retirement Planning. Show all posts
Sep 27, 2009
May Investment Results
The upward trend continues! Although the DJIA is still in negative territory our investments from Januaruy 1, 2009 thru May 31, 2009 reflects a Personal Rate of Return of 11.4 %. 
If you would like to know more about investment strategies please visit our Investment Planning articles.
If you would like to know more about investment strategies please visit our Investment Planning articles.
April Investment Results
April shows a positive trend for the DJIA and our Fidelity account reflects the same trend with a gain of 5. 4%. We're finally going the right direction!
Apr 10, 2009
Fidelity Loss in March
Our investment performance in 2009 still reflects a loss. However our portfolio, like the DJIA, has started an upward trend. Due to the fact our portfolio has been performing better than the DJIA we believe our portfolio diversification strategy is working pretty well.
During the period January 1, 2009 through March 31, 2009 the performance of the DJIA has been down about 16%, which is an improvement from last month which reflected a loss of 22%.
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Our return for the same period reflects a loss of 2.75% using Fidelity's time-weighted formula. We'll perform some additional research to make sure the calculation of the formula does not invalidate our performance.
If you would like to know more about investment strategies please visit our Investment Planning articles.
Mar 7, 2009
Fidelity Loss in February
As expected, our investment performance in 2009 reflects a loss. Despite this loss we believe we have successfully minimized our risk and we have positioned our investments to perform well when the market begins to come back.
The performance of the DJIA on a chart found at moneycentral.msn.com shows a the Dow dropped 22% while our account dropped 8.7% since January 1, 2009.
If you would like to know more about investment strategies please visit our Investment Planning articles.
The performance of the DJIA on a chart found at moneycentral.msn.com shows a the Dow dropped 22% while our account dropped 8.7% since January 1, 2009.
If you would like to know more about investment strategies please visit our Investment Planning articles.
Feb 7, 2009
Fidelity Investments
The downturn in the economy has pummeled the balances of most retirement plans and our account is certainly no exception.
We've decided to ignore our losses in 2008 and to focus on performance in 2009. With just a few clicks we can review our 2009 Personal Rate of Return at Fidelity Investments. We don't change our investment mix, we just like to see how we are performing compared to the the Dow Jones Industrial Average.
Today's review brought fantastic news!!! Our return for 2009 is "0."
Why is this fantastic? Check out the performance of the DJIA on a chart found at moneycentral.msn.com. While the DJIA is down, our Personal Rate of Return as of February 6, 2009, shows we have broke even in 2009.
Based on this information we believe we have successfully minimized our risk, and we have positioned our investments to perform well when the market begins to come back.
If you would like to know more about investment strategies please visit our Investment Planning articles.
We've decided to ignore our losses in 2008 and to focus on performance in 2009. With just a few clicks we can review our 2009 Personal Rate of Return at Fidelity Investments. We don't change our investment mix, we just like to see how we are performing compared to the the Dow Jones Industrial Average.
Today's review brought fantastic news!!! Our return for 2009 is "0."
Why is this fantastic? Check out the performance of the DJIA on a chart found at moneycentral.msn.com. While the DJIA is down, our Personal Rate of Return as of February 6, 2009, shows we have broke even in 2009.
Based on this information we believe we have successfully minimized our risk, and we have positioned our investments to perform well when the market begins to come back.
If you would like to know more about investment strategies please visit our Investment Planning articles.
Feb 6, 2009
Planning 101
We believe setting goals without creating plans to accomplish them is similar to wishful thinking. Wishful thinking may make you feel good however it produces no fruitful outcome. For real results you need to create a plan, which is really a series of steps to perform. Creating a plan to reach your goals isn’t as daunting as you might think. To assist you we’ve listed an approach to creating a plan below:
1) Document your goals in writing. The process of collecting your thoughts and documenting them allows you to clarify your goals. The more specific your goals are the easier it is to create steps to achieve them.
2) After reviewing your goals, think about the steps can you take today, tomorrow, in the future, to make them a reality. Write down these steps and assign a date to them that you would like to see the step accomplished.
3) Review your documented goals and steps every morning and every evening. This reminds you of the importance of your goals and keeps them fresh in your mind. If you think of additional steps during your review write them down and assign them a date as well.
4) Perform the steps. Completing the steps you have written down is your plan to achieving your goals. Ask yourself, “What can I do today that will take me a step closer to my achieving goal?”
5) Share your goals and steps with others. Sharing your goals allows you to internalize them. It also allows people to help you achieve your goals as well as support and encourage you along the way.
6) Don’t give up! Your goals will not be achieved in one day. Goals are achieved by completing steps over a period of time. By completing each step along your plan you become closer and closer to achieving your goals.
1) Document your goals in writing. The process of collecting your thoughts and documenting them allows you to clarify your goals. The more specific your goals are the easier it is to create steps to achieve them.
2) After reviewing your goals, think about the steps can you take today, tomorrow, in the future, to make them a reality. Write down these steps and assign a date to them that you would like to see the step accomplished.
3) Review your documented goals and steps every morning and every evening. This reminds you of the importance of your goals and keeps them fresh in your mind. If you think of additional steps during your review write them down and assign them a date as well.
4) Perform the steps. Completing the steps you have written down is your plan to achieving your goals. Ask yourself, “What can I do today that will take me a step closer to my achieving goal?”
5) Share your goals and steps with others. Sharing your goals allows you to internalize them. It also allows people to help you achieve your goals as well as support and encourage you along the way.
6) Don’t give up! Your goals will not be achieved in one day. Goals are achieved by completing steps over a period of time. By completing each step along your plan you become closer and closer to achieving your goals.
Jan 24, 2009
Book Review: Gimme My Money Back
We purchased Gimme My Money Back to learn more about the 2008 financial crisis and to learn how to improve upon our retirement plan investment strategy.
Despite the ridiculous title the book does an excellent job of explaining investment terminology and the events that lead up to the current economic situation found in the United States. The book takes you through asset allocation, investment diversification, and a step by step approach to build your own custom-tailored portfolio.
Based on the information we gained from the book we have changed our investment elections in our 401(k) account. We believe our portfolio is now better positioned to handle the fluctuations in the market.
If you want to build your financial knowledge and minimize your investment risk we highly recommend this book. It is a pleasure to read and it contains excellent information, tools, and guidance. We give Gimme My Money Back two thumbs up.
Velshi, A. Gimme My Money Back. New York: Sterling & Ross Publishers, (2008)
This is the second book review of our planned fifty two book reviews.
Despite the ridiculous title the book does an excellent job of explaining investment terminology and the events that lead up to the current economic situation found in the United States. The book takes you through asset allocation, investment diversification, and a step by step approach to build your own custom-tailored portfolio.
Based on the information we gained from the book we have changed our investment elections in our 401(k) account. We believe our portfolio is now better positioned to handle the fluctuations in the market.
If you want to build your financial knowledge and minimize your investment risk we highly recommend this book. It is a pleasure to read and it contains excellent information, tools, and guidance. We give Gimme My Money Back two thumbs up.
Velshi, A. Gimme My Money Back. New York: Sterling & Ross Publishers, (2008)
This is the second book review of our planned fifty two book reviews.
Jan 9, 2009
Spousal IRA
A "Spousal IRA" is a rule which allows the employed spouse to make an IRA contribution on behalf of a non-working spouse or a spouse who has little income. This rule allows you to rely on your spouse's income when you make contributions. These contributions are referred to as "spousal IRA contributions".
As a general rule, your IRA contribution for any year can not exceed your qualifying income for the year. However, if you file jointly with a spouse who has qualifying income, you don't need qualifying income of your own. Other rules also apply as well so you should clarify your situation with your financial institution before making contributions.
An interesting point on a Spousal IRA is that the source of the money really does not matter. Your spouse can suppy the money or you can get it from another source.
As a general rule, your IRA contribution for any year can not exceed your qualifying income for the year. However, if you file jointly with a spouse who has qualifying income, you don't need qualifying income of your own. Other rules also apply as well so you should clarify your situation with your financial institution before making contributions.
An interesting point on a Spousal IRA is that the source of the money really does not matter. Your spouse can suppy the money or you can get it from another source.
Jan 8, 2009
Don't Reduce, Increase Your 401 (k) Contributions
We have all heard and probably agree with the saying "buy low and sell high." However, a recent poll by A
ARP find that "nearly one in five respondents said they had stopped or reduced their contributions to their 401(k)". With the market at the lowest level in years right now seems like an excellent time to increase your salary deferrals. Once the market starts to rise again you may have missed out on some gains.
Our plan for 2009 is to fund the 401(k) to the maximum allowed. Our 401(k) plan allows us to contribute $16,500.00 in deferrals. This amount plus our matching contributions should help us recover some of the losses we experienced in the market downturn.
Pretax Salary Deferrals + Matching Contributions + Low Prices = Big Retuns in the Future?
ARP find that "nearly one in five respondents said they had stopped or reduced their contributions to their 401(k)". With the market at the lowest level in years right now seems like an excellent time to increase your salary deferrals. Once the market starts to rise again you may have missed out on some gains.Our plan for 2009 is to fund the 401(k) to the maximum allowed. Our 401(k) plan allows us to contribute $16,500.00 in deferrals. This amount plus our matching contributions should help us recover some of the losses we experienced in the market downturn.
Pretax Salary Deferrals + Matching Contributions + Low Prices = Big Retuns in the Future?
Jan 4, 2009
Receive the full match on 401(k) Contributions
One of our goals for 2009 is to ensure we receive the full match available on our 401(k). If your employer offers a retirement plan with a match this is a“must-do” step in your retirement planning.
Every individual should take advantage of their employers match since it really is free money! With a match on your 401(k) contributions every time you save some of your paycheck by putting it into your 401(k) account, your company puts in a "match" contribution as well. However, if you fail to make a contribution then your company's match contribution also goes away.
Each retirement plan can be different so carefully review the plan information provided by your Human Resources department. Some employers have very generous matching programs while others have minimal matches or no matching program at all. Be sure to understand your matching program and don’t turn down free money.
In our case we plan to maximize or hit the contribution limit in our retirement plan. This means we plan to contribute the full amount allowed by law to the plan throughout the year. One drawback or concern in fully funding contributions is hitting the contribution limit before the end of the year. Once an individual reaches the limit contributions must cease and as a result the individual may loose the match available on "future" contributions.
Every individual should take advantage of their employers match since it really is free money! With a match on your 401(k) contributions every time you save some of your paycheck by putting it into your 401(k) account, your company puts in a "match" contribution as well. However, if you fail to make a contribution then your company's match contribution also goes away.
Each retirement plan can be different so carefully review the plan information provided by your Human Resources department. Some employers have very generous matching programs while others have minimal matches or no matching program at all. Be sure to understand your matching program and don’t turn down free money.
In our case we plan to maximize or hit the contribution limit in our retirement plan. This means we plan to contribute the full amount allowed by law to the plan throughout the year. One drawback or concern in fully funding contributions is hitting the contribution limit before the end of the year. Once an individual reaches the limit contributions must cease and as a result the individual may loose the match available on "future" contributions.
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