Categories

Latest News

designer shop online

designer shop online ?Snowden responds to critics well, this is one of the options thats always been open to, to go to the unhcr and register as a refugee here. this place was rife with rumors all this afternoon g designer shop online oing round legal circles saying that he

online stores for women

online stores for women ?The Free Dictionary Language Forums But I dont think I must. And, at the same time, both corporations pay their Russian employees less than their US and EU colleagues. I can imagine plenty of businesses finding a gold mine in Russia and not bothering about fair

shopping outlet online

shopping outlet online ?Microsoft launches new Office SEATTLE launched its new Office software on Tuesday, featuring constantly updated, online access to documents from a range of devices as the world largest software company attempts to tailor its most profitable product to a mobile generation. The new Office suite of applications desktop

womens online store

womens online store ?Europe credit ratings slashed Standard Poors swept debtridden Europe with punishing credit downgrades yesterday, stripping France of its coveted AAA status and dropping Italy even lower. Germany retain womens online store ed its topnotch rating, but Portugals debt was consigned to junk. In all, S which last year

designer clothes online shopping

designer clothes online shopping ?stocks falls as investors await European Central Bank meeting stocks fell, after the Standard Poor 500 Index jumped the most in a month, as investors awaited a European Central Bank policy meeting tomorrow, offsetting corporate earnings that beat analysts estimates. a yoyo market, Tom Wirth, who helps

online shopping stores

online shopping stores ?Asia stocks jump as US budget deal appears near lawmakers edged toward a deal to stop hundreds of billions of dollars in automatic tax increases and spending cuts from taking effect that could throw the world biggest economy off a socalled fiscal cliff. Senate passed an emergency

bench outlet

bench outlet ?Euro zone deal lifts stocks Twentysix of the 27 European Union leaders on Friday agreed to pursue stricter budget rules for the single currency area and also to have euro zone states and others provide up to 200 billion euros in bilateral loans to bench outlet the

online shopping india

online shopping india ?Eric Raskin stocks dipped on Wednesday on worries about the outlook for corporate results despite strong earnings from aluminum company Alcoa Inc. NYSE:AA News ADVERTISEMENT The decline threatened to halt the D online shopping india ow industrials string of eight straight sessions of positive finishes. Citigroup Inc.s NYSE:C

outlet metzingen

outlet metzingen ?Tanzania building collapse death toll rises to 30 The death toll from the collapse last week of a building in Tanzanias largest city rose to 30 early today, according to a government agency statement. Rescue workers have given up hope of finding more survivors after the 16storey building in

cheapest online shopping

cheapest online shopping ?Molina Healthcare Selected to Preliminary Russell 3000 Index Molina Healthcare, Inc. NYSE NYSE See: New York Stock Exchange : MOH See modem on hold. announced today that it has been selected to be included in the preliminary list of companies that will join the Russell 3000R Index.


News Archiv

designer fashion outlet

Published: Saturday 24 August, 2013

designer fashion outlet designer fashion outlet ?Should I include retirement funds in calculating my asset allocation



You see, my investments have an asset allocation. But then, so do my retirement savings definedcontribution pension fund and a retirement annuity. Combining investments and retirement funding gives an overall networth asset allocation.



If I were to follow an asset allocation such as 60% equity, 25% bonds, 15% cash is that supposed to be allocation for just my investments, or the sum of my investments and retirement funds?



A classic example is your emergency fund which has a potentiallyimmediate time horizon vs. your retirement savings. The emergency fund would be all in cash or very shortterm bonds, and would not count in your retirement asset allocation. Since the emergency fund usually has a capped value a certain amount of money you want to have for emergencies rather than a p designer fashion outlet ercentage of net worth value, this especially makes sense; you have to treat the emergency fund separately or youd have to keep changing your asset allocation percentages as your net worth rises hopefully with respect to the capped emergency amount.



Similarly, say you are saving for a car in 3 years; youd probably invest that money very conservatively. Also, it could not go in taxdeferred retirement accounts, and when you buy the car the account will go to zero. So probably worth treating this separately.



On the other hand, say you have some savings in taxdeferred retirement accounts and some in taxable accounts, but in both cases youre expecting to use the money for retirement. In that case, you have the same time horizon and goals, and it can pay to think about the taxable and nontaxable accounts as a whole. In particular you can use asset location put lesstaxefficient assets in taxdeferred accounts. In this case maybe you would end up with mostly bonds in the taxdeferred accounts and mostly equities in the taxable accounts, for tax reasons; the asset allocation would only make sense considering all the accounts, since the taxable account would be too equityheavy and the taxdeferred one too bondheavy.



There can be practical reasons to treat each account separately, too, though. For example if your broker has a convenient automatic rebalancing tool on their website, it probably only works within an account. Treating each account by itself would let you u designer fashion outlet se the automatic rebalancing feature on the website, while a more complicated asset location strategy where you rebalance across multiple accounts might be too hard and in practice you wouldnt get around to it. Getting around to rebalancing could be more important than taxmotivated asset location.



You could also take a keepitsimple attitude: as long as your asset allocation is pretty balanced say 40% bonds and includes a cash allocation that would cover emergencies, you could just put all your money in one big portfolio, and think of it as a whole. If you have an emergency, withdraw from the cash allocation and then rebuild it over time; if you have a major purchase, you could redeem some bonds and then rebuild the bond portion over time. When I say over time Im thinking you might start putting new contributions into the nowunderallocated assets, or you might dollarcostaverage back into them by selling bits of the nowoverallocated assets.



Anyway theres no absolute rule, it depends on whats simple enough to be manageable for you in practice, and what separate shorterhorizon investing goals you have in addition to retirement.



You can always make things complex but remember that a simple plan that happens in real life is better than a complex plan you dont keep up with in practice or a complex plan that takes away from activities youd enjoy more.



Id imagine that its a small portion of the population that can have much of both.



If one is saving a decent amount for retirement, say 1015%, they arent likely to have much else, aside from the house if included.



For example, when I look at my pie chart I get Retirement 72%, House 22%, everything else 6%. money funds CDs, etc and the rest invested long term. The short need money isnt part of the long term asset allocation, to be specific.



A young investor has been working on their retirement planning for a few years now, and has a modest amount of retirement savings say $15,000 allocated carefully according to one of the usually recommended schemes. stocks, with smaller exposures to small cap, international and bond markets.



Years before however, they mad an essentially emotional investment in a struggling manufacturer of niche personal computers, which then enjoyed something of a renaissance and a staggering growth in shareholder value. Lets say their current holdings in this company now represent $50,000.



At the same time, if we switch the account balances, the investor might be reassured that their asset allocation is fine and diversified, even though the assets th designer fashion outlet ey have access to before retirement are entirely in a single risky stock.



In neither case is the investor well served by combining their funds when figuring out their allocation especially as the goal allocations may very well be different. designer fashion outlet

Back