bigblu 2 you
Well-Known 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?
after tax question
- Thread starter bigblu 2 you
- Start date
Catatonic
Nine Lives
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
bigblu 2 you
Well-Known Member
thanks,im going small on the after,most is in pre.just thought id use it as a tool for easy access.
UpstateNYUPSer(Ret)
Well-Known Member
My Roth IRA is invested in AIVSX.
Benben
Working on a new degree, Masters in BS Detecting!
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.
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.
