Investments Update: Getting My Feet Wet

Okay.  Took off the training wheels today…well maybe just one of them.  I finally settled on a 80/20 asset allocation, and while I’m not done with the process yet, I took a major step today.  You see, I am afflicted with what’s known as analysis paralysis — for good reason.  Today I took care of the bond part by purchasing some Vanguard Total Bond Market ETF (BND) and iShares Barclays TIPS Bond Fund (TIP) in my Roth IRA (and incurring $28 in fees in the process) and reallocating some of my 401(k) to also include PIMCO Total Return Instl (PTTRX).  The expense ratio on PTTRX are higher than BND, but it’s all I have to work with.  Now I have cash in my non-retirement accounts, equities and bonds in my 401(k) and bonds in my Roth IRA.

So now I have to figure out how to purchase equities with my cash.  I decided to use WellsTrade as my broker today.  I was originally using TDAmeritrade, but was put off by the $10/trade fees.  With WellsTrade, I can trade 100 times a year with no fees and $5.95/trade after that.  I highly doubt I will trade twice a week.  Although, I may trade a little more than normal because WellsTrade does not have dividend reinvestment.  All in all, this deal saves me a boatload of money!

Now I’m almost ready to go.  Let’s see some major market action so I can get my hands dirty!

February Update

Dear readers,

I apologize for not having written in a while. I wanted to give everyone an update on where I am financially and what my current plans are.

As for the nest egg, I currently have $185,000 in cash after making my 2009 and 2010 nondeductible IRA contributions to my traditional IRA. I then converted my traditional IRA into a Roth IRA (yay for new law!). As a result, I have $105,000 in my retirement accounts (401(k) and Roth IRA).

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