After going almost straight up month after month, the stock market finally got more interesting. During the climb, some readers kindly reminded me of my experiment to buy on a dip with my 2013 IRA contribution. As recent as early May, a reader asked me whether my waiting backfired.
Look at what a difference a-month-and-a-half makes. Since early May the fund I wanted to buy — Vanguard Total International Stock Index Fund — declined by about 10%. As of June 20, it was 3.5% below the price I would’ve paid had I bought on January 2, the first day I could make my 2013 IRA contribution. I made the contribution and bought the fund on Thursday.
On the same day I also bought shares in Vanguard Precious Metals and Mining Fund (ticker VGPMX) and iShares Core Emerging Markets ETF.
Now, here are some interesting articles I read this week:
30-year TIPS reissue auctions at a lofty 1.42% by David Enna at TIPS Watch
Speaking of patience, the same 30-year TIPS that first came to the market in February are now nearly 20% cheaper. Waiting 4 months relative to 30 years is nothing. Patience is handsomely rewarded.
Your Most Valuable Financial Asset Could Be Worth Millions More by Lion at Wealth Lion
I absolutely agree. It’s a matter of choosing what you do. Recently a 26-year-old high school dropout sold his company for more than $1 billion and earned $250 million for himself. That’s an extreme example of how to manage your career well. You don’t have to make $250 million. Just seeking out rewarding work will do.
Brokered CDs: Are They Worth Using? by Mike Piper at Oblivious Investor
Yes they are when the price is right. You get better prices on the secondary market but you have to know how to pick. When I have time I will write a follow-up post to that one I wrote 3 years ago.
Hotwire & Priceline Service Fees: A Dirty Little Hotel Pricing Secret by Michael at Financial Ramblings
After being cheated by Hotwire twice, I swear I will never use Hotwire again. Priceline in my experience is more honest with its hotel ratings.
A Personal Look at Disability Insurance at The White Coat Investor
When I worked for a company that didn’t offer disability insurance, I bought a personal policy on my own. Now I just use the group policy provided by my employer. The coverage may not be as broad but the price is right.
Does Car Insurance Cover Tire Damage? by Michael at Financial Ramblings
I learned something.
Can You Live Off a $1 Million Dollar Investment? by Matthew Amster-Burton at MintLife
For how long? One person or two? Do you also get a paid-off home along with it? If it’s one person retiring at 65 with a paid-off home, a $1 million investment can be fairly comfortable.
[Photo credit: Flickr user Jason Paluck]