I just put in an order to buy $247.01 worth of iShares S&P SmallCap 600/BARRA Growth (IJT) ($250- $2.99 transaction fee). After listening to one book on tape, I can’t remember which one off hand, the author was talking about one guy who was proud of having earned a large sum of money from Berkshire Hathaway in a tax deffered account. The author said it was dumb, because it is a growth stock. The gains will now be taxed as income, when if the stock was held outside the account, it would have been taxed as capital gains. I think I am getting that right. Anyway, most of the stuff I have been buying for my buyandhold account have been stocks/funds with large dividends. I will have to pay taxes on those. So what I may do is start putting the high yeilds stuff into a Roth IRA, and buy growth stuff for my regular account. Thats what I am thinking. I compared the IJT versus some other funds, and it appeared to be doing quite well. It is an index fund which is good, so the expense ratio is on .25%. Maybe I will buy this for my regular holdings, and look at buying the IYR REIT index fund to put inside a Roth IRA. I still need to set up a Roth IRa, but will be doing so very soon.
7 Money Mantras for a Richer Life : How to Live Well with the Money You Have by Michelle Singletary.
I got this book on cd from the local library. The material was all pretty basic stuff such as save money, live within your means, avoid credit, don’t loan money to friends or family, have a will, organize your financial papers, and stuff like that. She refers to her grandmother a lot and the things she learned from her regarding money. If you really want to know, the mantra are:
1. If it’s on your ass, it’s not an asset!
2. Is this a need or is it a want?
3. Sweat the small stuff.
4. Cash is better than credit.
5. Keep it simple.
6. Priorities lead to prosperity.
7. Enough is enough.
I really didn’t get a lot out of it. I kept looking in my cd wallet at other books thinking I would rather be listening to them. I recommend David Bach’s books over this one.
My brother was telling me that he got free tickets to go to a financial seminar with five speakers including David Bach, the author of The Automatic Millionaire, and Start Late Finish Rich. He planned on going, and I was excited to hear how it went. I found out later that he didn’t make it to the seminar.
Today in the mail I got free tickets to a similar seminar with the featured speaker being William Danko who was one the authors of The Millionaire Next Door. I even get a free autographed copy The Millionaire Next Door! Way cool! I am excited, and will post here about the seminar!
I finally got things worked out to start receiving payments from my Mom’s thrift plan that I inherited. The plan is currently worth $92,000. I have spent the last month dealing with the people there, with my access pin number repeatedly getting reset week after week. Last week after going off on some low level peon named Domenic , I demanded to speak with a manager. The manager called me back. My pin was reset again, and she made an appointment for the naxt week to call me back, after I had gotten the new pin in the mail. She called this morning, 20 minutes late, but I got the stuff with the account straightened out finally. I should start getting the payments via direct deposit in about a month, with payment spreadout over almost 5 years. I elected to have 25% witheld for federal taxes. I plan on investing most of it. I am mulling over different options, and want to talk with my CPA. Since I have a side business and make a bit a money from that, I may open a SEP, and try to max that out. I might also look at a Roth IRA. I already am maxing my 401k plan at work, and want to get as much of the thrift plan money growing tax deferred as possible.
Most of my holdings are down today. Coca Cola (KO) and Merck (MRK) are both up, probably because they are paying dividends on Friday. At least that is my guess. Since I have dividend reinvestment, I will probably be buying the fractional shares at a slight elevated price. Can people make some sort of a profit from this slight increase? Maybe traders? Whatever! I am in this for the long term!
I finally got the $1249 check from the IRS for my Mom’s 2001 return. It will go back to the IRS to pay for the prepayment of our 2005 taxes. I will be getting a $5000 check from Amazon in about a month, most of which will go to pay off my credit card bringing the balance to ZERO! There might be some left, that I will shove into stock. Though maybe I should hold back a $1000 to cover the tax prepayment for second quarter.