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.
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