Revisiting my asset allocation
Asset allocation matters when it comes to long term returns. It serves as a guidepost to stick to when times are bad and also gives me the opportunity to balance the risk and rewards of investing according to my own goals and risk tolerance. There is no simple formula for figuring out what asset allocation is right for an individual. There are simple ones like the three-fund portfolio which includes three total market funds that cover domestic and international stocks as well as bonds weighted in a way that matches the risk tolerance of the investor. There are also more complicated ones that slice and dice the various asset classes…
401k contribution limits for 2018
The IRS ruling on next year’s 401k, IRA and HSA limits is finally here and investors who already max out their 401k are getting some good news. For the first time since 2015, the IRS has bumped up the 401k limit. In 2018, it the limit will be $18,500, up $500 from the current $18,000. This new change also applies to other retirement accounts that mirror the 401k limit like the 403b, most 457 plans and the TSP. The catch up contributions for those over 50 remain unchanged at $6000 for 2018 meaning the maximum deferral anyone can make is $24,500 this year, up from $24000 last year. The benefit for…
Getting my girlfriend excited about saving money!
I was surprised when my door burst open earlier this week and future Mrs. TimeInTheMarket ran in with a sheet in her hand. “Look,” she said pointing to sheet, “I gained $364 this year!,” she continued with an excited tone to her voice. I was a bit confused as she had never been one to get excited about money before. We’ve talked about my portfolio and my desire to retire early in the past but they were never conversations she was too eager to have. In fact the below cartoon captures her interest in the subject perfectly as resorts to nodding half the time when I start talking finances and…