Comments on: Cash investments http://bjhess.com/blog/2006/01/05/cash-investments/ Barry Hess, speaking in tongues. Thu, 08 Jan 2009 13:09:12 +0000 http://wordpress.org/?v=2.6.2 By: bjhess http://bjhess.com/blog/2006/01/05/cash-investments/#comment-1106 bjhess Fri, 06 Jan 2006 15:29:16 +0000 http://bjhess.com/bjhessblog/?p=649#comment-1106 Over the life of The Wife's Roth IRA she has gained 63% when compared to the cash she's contributed. I'm guessing we're coming upon the 4-year anniversary of the account, though it could be 5 years. In either case, that is excellent. Especially when you consider that the cash placed in the account was not a lump sum upon opening the account. In fact, she probably hadn't contributed half of the total cash until 2 years ago. A difficult choice we have is determining the risk level we want to take. This year we'd like to send a larger contribution to The Wife's Roth than previously. I must admit I'm tempted to put it all in <a href="http://finance.yahoo.com/q/bc?s=DODFX&t=5y&l=on&z=m&q=l&c=" rel="nofollow">this Dodge & Cox International</a> that she already has a little but of money in. Greater than 35% gain over each of the last two years is just too tempting. Especially while Mr. Bush remains in the executive. I'm also intrigued by the idea of throwing the money at some sort of mixed international investing mainly in China. Again, even if you are poor you need to find a way put $5k away in something very aggressive (assuming you're young). Over the life of The Wife’s Roth IRA she has gained 63% when compared to the cash she’s contributed. I’m guessing we’re coming upon the 4-year anniversary of the account, though it could be 5 years. In either case, that is excellent. Especially when you consider that the cash placed in the account was not a lump sum upon opening the account. In fact, she probably hadn’t contributed half of the total cash until 2 years ago.

A difficult choice we have is determining the risk level we want to take. This year we’d like to send a larger contribution to The Wife’s Roth than previously. I must admit I’m tempted to put it all in this Dodge & Cox International that she already has a little but of money in. Greater than 35% gain over each of the last two years is just too tempting. Especially while Mr. Bush remains in the executive.

I’m also intrigued by the idea of throwing the money at some sort of mixed international investing mainly in China.

Again, even if you are poor you need to find a way put $5k away in something very aggressive (assuming you’re young).

]]> By: nm http://bjhess.com/blog/2006/01/05/cash-investments/#comment-1104 nm Fri, 06 Jan 2006 07:55:13 +0000 http://bjhess.com/bjhessblog/?p=649#comment-1104 Thanks, but you don't have to go through all of that hassle just for me. I'll be fine. Still, sounds like a good plan. Thanks, but you don’t have to go through all of that hassle just for me. I’ll be fine. Still, sounds like a good plan.

]]> By: bjhess http://bjhess.com/blog/2006/01/05/cash-investments/#comment-1103 bjhess Fri, 06 Jan 2006 04:43:53 +0000 http://bjhess.com/bjhessblog/?p=649#comment-1103 The staggered CD's idea was developed while going back and forth with my brother. I decided 12 CD's was overkill, so quarterly sounded good. 12 CD's would probably also result in a loss of interest, not that it matters <em>that</em> much with such low level, low yield investments. The work involved nixed that idea. I suppose I should tip my hand a bit here. Using the calculators you shared with me, MEG, I found that I was more than on target with my retirement planning. Ah, I guess I won't mention too many numbers yet because I don't think I remember them correctly. I will say I was thinking $2 million would probably be necessary for the both of us to retire comfortably. Yet I don't remember a target age for the $ amount, so it's kind of a useless number. I believe my investment track is right on line with that number, but when monkeying with the calculators I found that, due to inflation, it wasn't going to last me long. Especially considering the likelihood that one or both of us will live longer than our grandparents and parents tend to nowadays. Yet, I really can't believe how inflation effects things. I just can't put my head around us needing, say, $350k to live comfortably. It doesn't really register. And I seriously don't anticipate that I could quit working cold turkey. And when we're older maybe 55 or 65 won't seem as old as it does today (functionally speaking). Etc, etc, etc. Finally I always go back-and-forth on what the value of saving all this money is. I mean, yeah, get some money out there (as early as possible kids) accruing interest. But let's not go overboard. [extreme example] Why save $20k for your deathbed when you and your family could have been swimmin' in a pool for the last 30 years? The staggered CD’s idea was developed while going back and forth with my brother. I decided 12 CD’s was overkill, so quarterly sounded good. 12 CD’s would probably also result in a loss of interest, not that it matters that much with such low level, low yield investments. The work involved nixed that idea.

I suppose I should tip my hand a bit here. Using the calculators you shared with me, MEG, I found that I was more than on target with my retirement planning. Ah, I guess I won’t mention too many numbers yet because I don’t think I remember them correctly.

I will say I was thinking $2 million would probably be necessary for the both of us to retire comfortably. Yet I don’t remember a target age for the $ amount, so it’s kind of a useless number. I believe my investment track is right on line with that number, but when monkeying with the calculators I found that, due to inflation, it wasn’t going to last me long. Especially considering the likelihood that one or both of us will live longer than our grandparents and parents tend to nowadays.

Yet, I really can’t believe how inflation effects things. I just can’t put my head around us needing, say, $350k to live comfortably. It doesn’t really register. And I seriously don’t anticipate that I could quit working cold turkey. And when we’re older maybe 55 or 65 won’t seem as old as it does today (functionally speaking). Etc, etc, etc.

Finally I always go back-and-forth on what the value of saving all this money is. I mean, yeah, get some money out there (as early as possible kids) accruing interest. But let’s not go overboard. [extreme example] Why save $20k for your deathbed when you and your family could have been swimmin’ in a pool for the last 30 years?

]]> By: MEG http://bjhess.com/blog/2006/01/05/cash-investments/#comment-1102 MEG Fri, 06 Jan 2006 04:28:21 +0000 http://bjhess.com/bjhessblog/?p=649#comment-1102 That's a creative solution with your staggered Certificates of Deposit. Nice thinking. I'm drawing a blank on your final question. Not good. I've saved a ton of money so far, but I don't have a specific goal in terms of when I hope to retire and how much money I expect to have at that point. Bettter give that some thought. That’s a creative solution with your staggered Certificates of Deposit. Nice thinking.

I’m drawing a blank on your final question. Not good. I’ve saved a ton of money so far, but I don’t have a specific goal in terms of when I hope to retire and how much money I expect to have at that point. Bettter give that some thought.

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