2015 401k 403b IRA Contribution Limits

The government released the Consumer Price Index for July 2014. Inflation is higher this year but still low by historical standard. Although we don't have all the necessary numbers yet, because the way rounding works, I'm able to comfortably project the 2015 contribution limits for 401k/403b/457 plans and IRAs. 401k/403b/457 Elective Deferral Limit 401k/403b/457 contribution limit will increase by $500 to $18,000 in 2015. If you are age 50 or over, the catch-up contribution limit will also [...]

Stop Using Vanguard Money Market Fund

The SEC released news rules on money market funds last week. Money market funds for retail investors will still keep the $1 fixed NAV. They can impose fees and restrictions when they face liquidity problems. I don't think Vanguard's money market [...]

Social Security Claiming Strategy Calculators Compared

Financial Engines was founded by Nobel laureate William Sharpe. It offers investment advice primarily through workplace retirement plans. Recently Financial Engines launched a free Social Security planner. I test-drove it with some hypothetical [...]

Bonds Had Good Returns: Wrong In CDs?

Both stocks and bonds did well in the first half of 2014, especially bonds. Vanguard Total Bond Market Index Fund returned 3.9% in six months ended on June 30 whereas Vanguard Total Stock Market Index Fund returned 7% in the same period. If we get a [...]

Insights From How America Saves 2014

Vanguard produces a comprehensive study every year of the 401k-type plans it administers. The study includes 3 million people. The large sample makes it reflective of the population as a whole. I'm noting down the bits I found interesting in the [...]

Having a Mortgage and Buying Stocks On Margin

From the previous two posts on investing and home ownership -- The Difference Between Asset And Investment and Is Imputed Rent Income? -- we determined that buying a home is partly an investment and partly prepaying an expense. Why does it matter [...]

Is Imputed Rent Income?

This continues the series on homeownership and investing. Last week's post The Difference Between Asset And Investment was fairly straight forward. We concluded that whether your home is an investment or not depends in part on whether your living in [...]