after tax question

Discussion in 'UPS Retirement Topics' started by bigblu 2 you, Jun 4, 2013.

  1. bigblu 2 you

    bigblu 2 you Active Member

    im going to contribute to an after tax plan,should i go with a stable or s&p,or bond.?any ideas with the current trends?
     
  2. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member


    Bonds - No. Too expensive ... maybe in a couple years.

    Simple answer - Index funds for stocks
    S&P- 40%
    Russell 1000 mid-cap via iShares - 20%
    Russell 2000 small cap via iShares - 10%
    Muni Bonds in states that have required balanced budgets - 20% (I live in Georgia so I take advantage of GA Muni Bods that provide tax-exempt earnings). Never invest in muni bonds from CA, NY, IL, - way too risky
    Intl - 10%

    More complex answer -
    Go to Vanguard or the like and do a little reading.
    ROI on Bonds is too low right now compared to stocks that are based on dividend payments so I only have 20% in my mix.
    Instead I invest in these stocks - which have good yields, good fundamentals, low betas, and long term stability
    ADP
    AMLP
    CLX
    GPC
    JNJ
    K
    KMB
    KO
    LMT
    MAT
    MCD
    NEE
    PEP
    PG
    RSG
    RTN
    WM

    The bonds I invest in are:
    FRSTX
    GAUAX
    HYPSX
    IVFAX
    JANBAX
    PAUBX
    SVAAX
    TIBAX
    Note: My fees are maxed at 1% per year so look at fees on the Bond funds.

    I do some hedging via inflation iShares - TIP
     
  3. bigblu 2 you

    bigblu 2 you Active Member

    thanks,im going small on the after,most is in pre.just thought id use it as a tool for easy access.
     
  4. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    My Roth IRA is invested in AIVSX.
     
  5. Xexys

    Xexys Retired and Happy

    Just stay away from REIT's at the moment!
     
  6. srvhero

    srvhero "leastbest"

  7. Benben

    Benben Active Member

    Reits are where many bond investors have fled to the past 4+ years. As bond yields rise, intrest rates go up (or vise-versa according to which author you read.) You will see these same investors go back to bonds, read; a sell off. This is because when interest rates go up the spread between long term and short term barrowing will narrow and that hurts Reits drasticaly unless the particular Reit is hedged correctly.

    Now, just to make the picture a little muddier... When the sell off occures, June, the price of reits drops which inturn jacks up the yield. If you are looking at reits you have to look at BV and FFO. P/E means very, very little for reits. This is very hard for most stock investors to comprehend.

    The Prudential 401K reit fund is not very "diversified." Right now its at damn near historic lows. Getting in now, IMO, will see a very nice return for the next month or 3 untill the Fed opens its gash again and puts out another "statement." Mr. Ben needs to be gagged!---Again, this is just my opinion.