Feed items
A Simple Portfolio of Three Funds
MSN Money lists a simple portfolio of three funds as follows:
Some experts are pushing a back-to-basics approach to investing. As drastic as it may sound, they say it's possible -- even at times desirable -- to construct a very well-diversified portfolio using just three low-cost mutual funds or ETFs.
Which three funds to use? A classic trio provides exposure to U.S. stocks, foreign stocks and U.S. bonds.
Many "Bogleheads" -- a group of investors who favor index investing as inspired by Vanguard Group founder John Bogle -- suggest a three-fund portfolio consisting of the U.S.-focused Vanguard Total Stock Market Index (VTSMX)fund, Vanguard Total International Stock Index (VGTSX), and Vanguard Total Bond Market Index (VBMFX). Together, the three mutual funds, which also offer ETF shares, track more than 15,000 global securities.
Is Social Security Stealing Your Chance Of Being A Millionaire?
The following is a guest post from Marotta Wealth Management.
I have edited it a bit to tone down the political rhetoric and just focus on the facts.
I've previously brought up the issue that I wish I had been able to keep what I have invested in Social Security. I know that society (and me as a result of that) benefits from people having a retirement safety net. But that doesn't change the fact that what I could have done with the money would have been much greater than what I'll get back from the system.
After you've read the piece below, leave your thoughts on the costs and benefits of Social Security as well as any comments on how it could be made better for all savers.
The Conversation About College is Turning in the Right Direction
This piece from the Wall Street Journal is one of the first I've seen from a mainstream media outlet that really digs deep into the cost/benefit considerations associated with going to college. Just a decade or so ago most media outlets bristled at the notion that money/economics/payback should play much of a role in selecting a college. Now here's a whole conversation on the next level of education-related financial issues: should someone's MAJOR and the earning power of that major be considered as a student selects a college and field of study?
I think you all know my thoughts on this issue, but if not, here are some pieces to remind you:
Thoughts on Being a Millionaire and Retirement
Here's an interesting piece from the NY Times that takes several views on being a millionaire:
They begin with the "a million dollars isn't what it used to be" argument:
In 1953, when “How to Marry a Millionaire” was in movie theaters, $1 million bought the equivalent of $8.7 million today. Now $1 million won’t even buy an average Manhattan apartment or come remotely close to paying the average salary of an N.B.A. basketball player.
I'm not sure comparing something to an apartment cost in New York or what an NBA player makes for a good argument, but I get what they're saying. Imagine the difference today in having $1 million versus having $8.7 million. Big difference, right?
They go on to admit "while it's not the fortune it used to be, it's more than most people have":
The Key to Happiness
Yahoo asks if saving is the key to happiness. Some of their thoughts from a recent survey by Ally Bank:
Happy Birthday to Me (It May Be My Last)!
Today is the 9th anniversary of Free Money Finance! Yes, nine short years ago I began this blog with one simple post -- on how to contact me. :) I followed that one up with a short piece noting what the site would be about. I summarized it as follows:
This site is about one simple thing: growing your net worth.
Two Questions on Tax Refunds
Here are two questions about tax refunds:
- Are you going to get one this year?
- If so, what are you going to do with it?
I have not yet received my final tax return, so I'm not sure whether or not I will get one. My guess is that I will since I overpaid Social Security taxes (because I changed jobs). If I do, I'll simply save/invest the amount. I don't look at it as "extra" money and won't plan on going on a spending spree.
How about you? What are your answers to the questions above?
FYI, the average refund this year is over $3,000.
Reader Profile: GL
The following is the latest post in my "Reader Profiles" series. Each post in this series details the financial situation and challenges of an FMF reader. The purpose of this series is to help us all identify with people like us (in similar situations -- not all will be, of course, but eventually I'm sure you will find someone like you here), get to know the frequent commenters on the site, and hear some financial wisdom/challenges from people other than me.
If you're interested in contributing to this series, then drop me an email. The series seems to be very popular with readers and I need a steady stream of new ones to keep it going.
Help a Reader: Partnership with a Family Member?
Here's an email I recently received from a reader:
One of my family members offered me to start a business - 4 relatives would be involved.
Do you think it's a good idea?
Entrepreneur.com gives some reasons why it's difficult:
What is the Ideal Retirement?
Here's an interesting article from Time that talks about redefining the ideal retirement.
Not that there ever was ONE ideal retirement, but the generally accepted retirement a generation ago was one where you worked until 65, lived it up for 5 to 10 years, then died.
As a contrast, here's what more and more people are thinking of these days:
Once common and easily defined, the ideal retirement is now highly individualized and increasingly difficult to achieve because of our longevity, retirement savings shortfall, and the financial setbacks of the past six years. But if you embrace the new model and can find satisfaction with your extra years on the job, it’s still possible to retire in style.
Facebook
Become a fan
Twitter
Follow us
RSS
Subscribe