Money Matters
noffgurl
member
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
For Those With Retirement Accounts:
How or do you invest them? Stocks, bonds, etc. . . What percentages for each do you follow if you invest. Or do you just let the money sit? I'm not sure on my IRA and H's 401k. On H's his company automatically put it all in one thing the JP Morgan Smart Retirement 2050 R2, but I have the option to change it.
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Re: For Those With Retirement Accounts:
Do not let the money sit. The entire point of doing this while you are young is that your money has time to grow (if invested).
H and I invest in mutual funds. Between us we have a couple index funds (one tied to the S&P and the other tied to NASDAQ), a small cap fund, a mid cap fund, and a large cap fund.
I also have a biotech fund that has thrown off returns like crazy over the 18 months or so that I've had it. I think I've netted like 42% growth or something insane. That one is super volatile though, so I keep a core amount to throw off returns, and then I skim those returns off the top when I've had a good run. I would make more in that fund if I didn't skim it, but I can't stand to watch it get too big. I'm planning on keeping that one even though it's so volatile and it makes me kind of nervous - I have a theory that Americans are generally overmedicated, and that will only increase as the population grows and the boomers age. I'm completely making this up, but so far it seems to be working out.
We don't have any bonds, because we're comfortable with heightened risk at our ages. We are not comfortable enough with risk to invest in stocks directly though - hence the mutual funds.
Spend some time learning about the differences and evaluating your risk tolerance before making a decision.
We have a mixture. Our 401k and Roth IRAs are all in mutual funds. We're at the age where some of that is held in bond fund, but it is still a minor part.
I have some treasury bonds that were purchased as I was growing up. They're earning well enough that I'm leaving them alone until they stop accumulating interest.
I also have some mutual funds, individual stocks, CDs, and cash in various allocations.
The only divergent investment is in a sector fund related to my industry. Partly, this is "fun" for me, but my industry is water resources and I think clean water technologies are going to be exploding in the next couple of decades. Just look what California is going through! I could be wrong, but it's a small overall percentage of my Roth.
I'd definitely recommend investing in something, but doing some internet research to determine your own philosophy, because it could be very different from the rest of ours. I found good basic information on money underthirty.com when I was starting out.