AppState
New Member
Cash: $ 1.10
Posts: 5
Joined: 09 Jan 2015
Location: NC |
Wife's 401k HELP |
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My wife has about 20k in her 401k. She puts 5% in and employer matches 3%. Her options are abundant, I have two questions:
1. What would be the best to invest in, there are so many good choices. Options are pasted below.
2. I have very few options at my work, I put in 17% and company matches 6%. Everything goes into FID CONTRAFUND (FCNTX). Should I lower my contributions and up hers? I have 30k in my 401k. We are both 30 years old and all our debt will be paid off in June except house and 1 car at 3%.
Thanks in advance for your help.
Asset Allocation - Lifestyle
JH LS Agg Active Strategy
JH LS Grow Active Strategy
JH LS Bal Active Strategy
JH LS Mod Active Strategy
JH LS Con Active Strategy
Aggressive Growth
Tocqueville Gold Fund
Natural Resources Fund
DFA Emerging Markets Value
Royce Opportunity
Vanguard Energy Fund
Fidelity Adv Leveraged Co Stk
DFA International Value
International Value Fund
DFA US Targeted Value Fund
Keeley Small Cap Value
International Core Fund
T. Rowe Price Sci & Tech
Small Cap Opportunities Fund
Intl Small Cap Fund
Vanguard Small Cap Grow Index
Oppenheimer Developing Mkt
Small Cap Growth Fund
Intl Equity Index Fund
DFA U.S. Small Cap Fund
Mid Cap Stock Fund
Small Cap Index Fund
Science & Technology Fund
Vanguard Explorer Fund
Franklin Small-Mid Growth
Oppenheimer Global
Templeton World
EuroPacific Growth Fund
Legg Mason ClearBr Agg Growth
Oppenheimer Intl Growth Fund
Small Company Value Fund
Invesco Small Cap Growth
SMALLCAP World Fund
American Century Heritage
Vanguard Mid-Cap Growth ETF
New World Fund
Real Est. Securities Fund
T. Rowe Price Health Sci
Financial Industries Fund
Growth
Ivy Asset Strategy Fund
Vanguard Small Cap Value Index
Fundamental All Cap Core Fund
T. Rowe Price Sml Cap Val
John Hancock Intl Growth
Mid Cap Index Fund
Victory Diversified Stock
Small Cap Value Fund
Invesco International Growth
Value Fund
Capital World Growth & Income
All Cap Core Fund
John Hancock Disciplined Value
Blue Chip Growth Fund
Vanguard Mid-Cap Value ETF
New Perspective Fund
Capital Appreciation Fund
John Hancock Select Growth
Mid Value Fund
Massachusetts Investors Fund
The Growth Fund of America
Fundamental Investors
Davis New York Venture
Domini Social Equity
Vanguard Growth Index Fund
Total Stock Market Index Fund
Pru Jennison Mid Growth Fund
Utilities Fund
Growth & Income
Equity Income Fund
Vanguard Value Index Fund
T. Rowe Price Equity Inc
500 Index Fund
FT Founding Funds Allocation
Investment Company of America
JPMorgan MidCap Value Fund
Franklin Mutual Beacon Fund
Fidelity ContraFund
Fidelity Adv New Insights
Mutual Global Discovery
Parnassus Core Equity Fund
Pax World Balanced Fund
Washington Mutual Investors
BlackRock Global Allocation
U.S. Equity Fund
American Balanced Fund
Capital Income Builder
Income Fund of America
PIMCO All Asset
Fundamental Large Cap Value
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Thu Jan 29, 2015 1:12 am |
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oldguy
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Location: arizona |
In my view, your FCNTX is better than anything on the list - almost 50 years of averaging 12.5%/yr. (That doubles every 6 years, Rule of 72). And it provides great diversification - large cap, mid caps, small caps, int'l. From your wife's list I'd pick either the 500 Index Fund or the Total Stock Market Index Fund.
I would keep doing what you're doing. The $30,000 that you have invested should be about $690,000 at age 60. And your annual investing will add $1.1M per $5000/yr - and at 23% of your pay, I'm guessing that you're putting in way over $5000?
As for the 2 debts, I would keep them both full term, you never prepay 3% capital. And US mortgages are one of the best sources of capital in the world, low rate, fixed rate, 30 years - that's a keeper. Don't allocate any of yur income stream to prepaying, instead put that maoney to work elsewhere.
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Thu Jan 29, 2015 3:20 am |
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AppState
New Member
Cash: $ 1.10
Posts: 5
Joined: 09 Jan 2015
Location: NC |
I put in $16k a year, i was thinking about taking a loan out for the car that is paid for $8k and refinance the home $30k, take that $38k and invest. Opening a roth account for myself and my 2year old, 19k at 60 years should make him a muiltimillionare. Thanks again for the advice oldguy.
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Thu Jan 29, 2015 4:56 am |
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GardenCat
Full Member
Cash: $ 12.80
Posts: 63
Joined: 07 Dec 2014
Location: Colorado |
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You cannot open a Traditional IRA or Roth IRA for someone that does not have earned income ( not capital gains or any investment gains).
For your 2 yr old, you can open a "custodial" account for a minor. Any gains in value would be taxable on your income tax return, at your rate.
Also, for your 2 yr. old, you can open a 529 College Fund, which will not be taxable except for certain uses (not college..., with some exceptions).
With a custodial account, your child would become the owner of the account and its monies upon reaching the age of entitlement in your state (usually 18 or 21). They can then do whatever they want with the money...
For your young child, investigate the different type of accounts available to you as the "custodian" - it can be a trust, or a 529, or other options...
BUT before you go into any debt to have investment funds (leveraging your money, not always a good idea) make sure you have some basics covered - 6 months to 1 yr of easily accessible money if you and wife become unemployed or medical disaster happens. and that you are both on the same page as to how you want to live your lives, i.e. living below your means...javascript:emoticon(' ')
Good Luck
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Thu Jan 29, 2015 5:18 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona |
quote: thinking about taking a loan out for the car that is paid for $8k and refinance the home $30k, take that $38k and invest.
Yeah, that's what I do
But, as Cat says, the govt retirement plans don't work for kids cuz they have no W2 income.
I avoid the govt kid plans, we keep our money in our own name and then use it w/o constraints. The gov plans seem to last for about one 'kid' cycle, then congress changes it. Eg, the 529 plan is 18 years old, this week Obama is talking about taxing that money - it barely lasted thru one 18 yr kid cycle. Same with the earlier plans, coverdell, etc. We keep that money in our names in a taxable SP500 at Vanguard - used it for college for kids, rental houses, whatever we want - and the money has no constraints - it grows tax deferred and it is available as an EF.
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Thu Jan 29, 2015 5:50 pm |
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Wino
Senior Member
Cash: $ 113.80
Posts: 560
Joined: 03 Aug 2012
Location: Dubai |
quote: Originally posted by GardenCat You cannot open a Traditional IRA or Roth IRA for someone that does not have earned income ( not capital gains or any investment gains).
That's not 100% true. You can have one spouse with no earned income and have an account using the other spouse's earned income. All of the same rules apply for both accounts.
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Thu Jan 29, 2015 6:10 pm |
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GardenCat
Full Member
Cash: $ 12.80
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Joined: 07 Dec 2014
Location: Colorado |
True for spouses, you can put money into a spouses IRA
But for children... True also: any person without W-2 income or business income (earned income) cannot put $ into an IRA, nor can someone else do it for them...
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Sat Jan 31, 2015 6:09 pm |
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Heirloom
New Poster
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Location: New Haven, CT |
Maximizing what your employer will match in your 401k is excellent.
Funding the 401k beyond that match locks up dollars that could be used in other ways that are more advantageous to you both now and in the future.
You're doing great on the savings side. Consider taking the dollars you are putting into the 401k above the employer match and maxing out ROTH accounts for you and your wife. You'll have much better investment/management options there as well.
For your 2yr old find an excellent agent who can properly design a cash value life policy to show you. I've used this approach with clients wanting to save for college The positives: tax free withdrawal for whatever college expenses you want to pay, cash growth is protected from market losses, if your child doesn't go to school you have other options to use the cash growth.
Be Well
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Sun Feb 01, 2015 3:06 pm |
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Wino
Senior Member
Cash: $ 113.80
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Location: Dubai |
quote: Originally posted by Heirloom For your 2yr old find an excellent agent who can properly design a cash value life policy to show you
Absolutely not. Cash value life insurance is the biggest rip off done without a gun. Buy term life insurance, and set up a 529 plan for the 2 year old. If anyone tries to sell you "whole life" "variable life" or any other type of cash value life insurance, run away and fire that agent.
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Sun Feb 01, 2015 6:06 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Location: arizona |
quote: Absolutely not. Cash value life insurance is the biggest rip off done without a gun.
AGREE!!
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Sun Feb 01, 2015 11:48 pm |
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Benstoke
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The $30,000 that you have invested should be about $690,000 at age 60. And your annual investing will add $1.1M per $5000/yr - and at 23% of your pay, I'm guessing that you're putting in way over $5000?
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Fri Oct 02, 2020 6:47 am |
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vaduvala
Senior Member
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The TFSA is more flexible and offers a better tax benefit than the RRSP but doesn't have as high contribution room. The RRSP will probably let you set aside more but has stricter rules around when you can withdraw your money, and what for. Many Canadian banks offer customers the ability to buy and sell shares of stock. However, the costs to trade are almost always more expensive than using a standalone discount online broker such as. All in all, besides the convenience factor, we do not recommend Canadians use their bank to invest in stocks. You can buy a listed TSX stock online by signing up for an online broker such as Wealth simple Trade or Questrade. From there, you'll have access to every stock listed on the TSX. You'll be able to load money into your account by linking your bank account to your trading account.
what is a telecom technician? - Fieldengineer
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Tue Jan 04, 2022 4:07 pm |
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