Miscellaneous Monday

Monday, July 16, 2012

Benefits-Shmenifits

I need to find time this week to review my benefit choices and make my selections, including my 401K contributions. When it comes to retirement savings, I NEVER EVER want to see that money in my paycheck - it needs to go straight to Fidelity, without passing go. LALALA I CAN'T SEE YOU (or spend you).

Looks like things will be comparable to my last gig (i.e., excellent), so I'm not too worried about it. I just want to make sure it's done. 

Go East, Middle-Aged Woman 

Things are likely to be a bit slow around here this week. I'm headed to points east to spend some time at Global Dynamics HQ, to include picking up my new laptop, getting my company credit card and the other administrivia that's required when you join a new outfit. I have lots of things to do this week, though, so don't expect me to be hanging around here much. Unless, of course, someone wants to pay me enormous sums of money to sit around here and blog my stream of consciousness. Then I'd drop Global Dynamics like a hot rock and be your dancing monkey full time. It seems unlikely, however, so you'll just have to limp along without me.

Let's Read!

We're up to a $75.00 donation to the Douglas County Library Foundation in the 2nd Annual Hot Chicks and Smart Men Dig Reading in Honor of Debbie Faught Summer Reading Program. That leaves 175 more books we need to read before now and Labor Day in order to make our goal. Let's get cracking, people - think of the children.

Yup, Still Middle-Aged

I'll be celebrating a birthday this week while traveling for business. I don't really care much about being out of town - the Smart Man, my Hot Daughter and I had our celebration on Saturday over at Vines, whose baked brie is so delicious and decadent that I actually had one for dessert. I never knew the wonders of brie until I was corrupted by the Amazing Anne and her Foodie Family. I now blame them for ALL my high calorie days, regardless of what I'm eating. That's just how I roll.

5 comments:

Anne C. said...

We're happy to take the blame for that. We have a long history of corrupting people with brie. >:D

Laur said...

I strive, always, to be the best "bad influence" that anybody has ever met. Leading them to baked brie or very fine scotch..hell, I'm either notorius or infamous Both are nice choices. Happy belated birthday celebtrated in style! Go Kick butt on the new job, of course, you will!

Jerry A. said...

Hi Janiece,
You don't know me. I'm a random reader of your blog- I mainly read Jim Wright's chicken-scratches. I just wanted to say that I've done a lot of reading on mutual funds and 401k's. Almost everyone's best choices are very low cost index funds built into life-cycle (retirement date targeted automatically rebalanced) funds. Don't take the word of some random commenter... Read up on this at personal.vanguard.com and Allan Roth's finance writing at CBSMoneyWatch
http://www.cbsnews.com/8301-505123_162-37742660/the-power-of-passive-investing/?tag=mncol;lst;6

There is a lot of marketing money put into selling higher cost actively managed funds. Active typically lose to index funds ~60% of the time. The managers aren't competing against you- they're competing against other highly paid managers. There's definitely no point in paying extra for higher cost index funds. Average fees for active funds run 1.15% per year vs. cheapest 0.2% for index funds. That almost 1% per year adds up to about 25-28% more money for you after 20 years of investing. (Less cumulatively for us older folks, but it's your money. It shouldn't be spent on some manager's bonus, shiny desk, suit. and fancy office.)

Lifecycle style funds re-balance your investment to more bonds and fewer stocks as they approach the time you need your money. The regular re-balancing these funds do can add about 0.2-0.5% per year to your bottom line (seems like not much, but it adds up).

Anyway, after looking at all of this info, it made my and my wife's 401k choices much smaller and simpler. Definitely cheaper. When my wife and I got married, we went to a financial adviser. (Flat fee adviser, no insurance or fund sales, no commissions, no conflict of interest.) He said my investing portfolio's projected return was within 0.3% of his- so not worth changing. Hope this helps. regards, Jerry A.

lunettesdesoleilparis said...
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Janiece said...

Hi Jerry. I appreciate the input - I've been in Fidelity's 2030 fund for years and years, and love my other index funds, too.