Last October, I shared my target allocations in my tax loss harvesting update. In this post, I thought I’d provide some financial voyeuristic fodder and share what my current allocations, as well as what investments I have in my portfolio. Tax-Advantaged and Taxable Allocations I break out my allocations between my tax-advantaged accounts (workplace 401(k),… Continue reading What’s in my portfolio?
The other day, a friend asked me to tell them what I thought about one of the options in their workplace 401(k), “The Growth Fund of America” by American Funds, ticker AGTHX. To evaluate an investment option, I generally look at three things: objective, fee structure, and benchmark performance. What is AGTHX? AGTHX is an… Continue reading How to Evaluate An Investment Option using AGTHX
During the presidential election, one proposal put forth by the Biden campaign was to switch traditional 401(k) contributions from a tax deduction to a tax credit. With today’s current tax regime, when you make a contribution it reduces your taxes at your marginal rate, which for me is 22%, or 22 cents for every dollar… Continue reading 401(k) Deduction-vs-Credit
For my readers in the United States, happy 4th of July! And for my readers outside of the United States, happy 4th of July as well 🙂 In a previous post I looked at target date funds offered by Vanguard. In my opinion, they are a great benchmark to measure other target date funds, including… Continue reading Comparing my 401(k)’s Target Date Funds
For most of my peers, digging through 401(k) investment literature and understanding the different options is not exciting and even a little scary. Few make it a hobby like I do. I can sympathize with the allure of a “target date” fund. The chief advantage of target date funds is their simplicity. Simply specify the… Continue reading DIY Target Date Fund
While writing the post about front-loading my 401(k) contributions a couple weeks ago, I made some additional calculations that I thought were interesting enough to share in a separate post. In the post, I used a theoretical example using a single fund, VTSAX, over a 10 year period. After 10 years of front-loading the annual… Continue reading Is 401(k) Front-loading worth it?
The other day, a coworker asked me if making a lump sum contribution to a 401(k) with the market depressed in the midst of COVID-19 would be a good idea. In essence, he was looking to time the market, buying when things looked low. I reminded him that “time in the market is more important… Continue reading Front-loading 401(k) Contributions
Fees make me grumpy. Given how much financial providers attempt to hide or obscure fees, I’m guessing I’m not the only one. Fees bite into my future retirement and are paid regardless of whether my investments do well or not. Investment Fees The first fee in my 401(k) plan that makes me grumpy is the… Continue reading 401(k) Fee Drag
You’re following the advice to max out your pre-tax contributions to 401(k) and Traditional IRA accounts. You notice the balances creeping up and you start to wonder, is there a point when you’ve saved too much in those tax advantaged accounts? Or, as Jeremy over at GoCurryCracker poses the question: “Is Your 401k Too Big?”… Continue reading Is my 401(k) balance too high?