Some time ago, I blogged about my "financial plan." With the Facebook IPO looming tomorrow, I thought I would post an update. My plan has evolved some to include a more detailed giving, saving, investing and paying plan. No plan however well developed is perfect, there are just too many variables, unknowns in the form of market fluctuations, job changes, price point increases ect.
Here is a brief overview, beginning with giving, the first thing I pay is a percentage to church and other ministry organizations. I'm looking at a suggestion that I read in a Christian magazine is to give half of your "tithe" to your parish, and half to the world's poor. Interesting concept. Second, a percentage equal to what is given (as a goal) is squirreled away in savings. This I divide between cash reserve and a personal ROTH IRA that is in a brokerage account. Doing that consistently is key to saving for the future.
Now I also point out that I participate in my companies 403b plan. I place the maximum percentage pretax possible in order gain the employer match. Due to changes in my employers retirement savings plan, I reallocated my investments from fairly conservative funds and fixed income, placing the majority of funds into a retirement year strategy fund offered by a large mutual fund. I am now placing 75 % into that fund, with 25% into fixed income. So far this year, it has increased my returns significantly. (at least to me) I will re-examine this and might add an additional fund later.
if you can participate in an employer 401K plan I encourage you to do so, it pays off.
Second my Roth is allocated between four funds. An equity mutual fund, a bond fund, a fixed income cash fund, and "Frank's fund." I most want to talk about my own fund, which is what I have invested in individual stocks, and ETF's. These are company stocks I select, that I either know well, do business with, or have a long reputation. In the near future i will focus on stocks known for paying dividends consistently. I have several to choose from already in my watch list. I buy once a month, unless there is a stock in my watch list with a price to good to resist. I try to buy at least 10 shares of a stock, but often can't. So I buy at least 4 shares of a particular stock, and if the price drops and funds are available, I buy more. I am in the process of building. I have a few stocks that are purely short term speculative. Everything else is a long term hold, perhaps purchase more if the price warrants it. I wanted to add a commodity fund, but decided against it, due to the volatility of such a fund. I do plan to purchase an ETF that is a commodity index fund. This limits my exposure to loss because its a smaller portion invested than if I bought into a mutual fund.
In the investment world there are large corporate investors, brokers, there are institutional investors, small investors, and then there is me. I'm a tiny investor.
Next post, my plan for Facebook.
Here is a brief overview, beginning with giving, the first thing I pay is a percentage to church and other ministry organizations. I'm looking at a suggestion that I read in a Christian magazine is to give half of your "tithe" to your parish, and half to the world's poor. Interesting concept. Second, a percentage equal to what is given (as a goal) is squirreled away in savings. This I divide between cash reserve and a personal ROTH IRA that is in a brokerage account. Doing that consistently is key to saving for the future.
Now I also point out that I participate in my companies 403b plan. I place the maximum percentage pretax possible in order gain the employer match. Due to changes in my employers retirement savings plan, I reallocated my investments from fairly conservative funds and fixed income, placing the majority of funds into a retirement year strategy fund offered by a large mutual fund. I am now placing 75 % into that fund, with 25% into fixed income. So far this year, it has increased my returns significantly. (at least to me) I will re-examine this and might add an additional fund later.
if you can participate in an employer 401K plan I encourage you to do so, it pays off.
Second my Roth is allocated between four funds. An equity mutual fund, a bond fund, a fixed income cash fund, and "Frank's fund." I most want to talk about my own fund, which is what I have invested in individual stocks, and ETF's. These are company stocks I select, that I either know well, do business with, or have a long reputation. In the near future i will focus on stocks known for paying dividends consistently. I have several to choose from already in my watch list. I buy once a month, unless there is a stock in my watch list with a price to good to resist. I try to buy at least 10 shares of a stock, but often can't. So I buy at least 4 shares of a particular stock, and if the price drops and funds are available, I buy more. I am in the process of building. I have a few stocks that are purely short term speculative. Everything else is a long term hold, perhaps purchase more if the price warrants it. I wanted to add a commodity fund, but decided against it, due to the volatility of such a fund. I do plan to purchase an ETF that is a commodity index fund. This limits my exposure to loss because its a smaller portion invested than if I bought into a mutual fund.
In the investment world there are large corporate investors, brokers, there are institutional investors, small investors, and then there is me. I'm a tiny investor.
Next post, my plan for Facebook.
