Friday Reading: Variable Annuity, Bonds, and Money Market Fund

By Harry Sit

Is Variable Annuity Tax Deferral Worth Paying For Again? by Michael Kitces at Nerd’s Eye View

The emergence of low cost variable annuities investing in index funds makes variable annuities more attractive than before, but you don’t need variable annuities unless you have very high income. For a married couple, maxing out 2 401k’s, 2 IRAs, quota for I Bonds and EE bonds will take more than $90k in savings. That’s before any age-50 catch-up’s, HSAs, 529 plans, or self-employed profit sharing contributions. At even 30% savings rate, it will require $300k income, above the $250k line tagged as the rich.

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Should You Add International Bonds to Your Portfolio? by Mike Piper at Oblivious Investor

Mike says there’s no need to jump in but he’ll accept it because Vanguard will automatically include the new international bond fund in the all-in-one fund he’s investing in.

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New international bond fund shows promise by Allan Roth at CBS MoneyWatch

Financial advisor and author Allan Roth is more positive about the new Vanguard international bond fund.

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What to Do When the Market Crashes by Mike Piper at Oblivious Investor

You know what I would do, right? Buy more.

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Yours, Mine, and Ours: A Couple’s Guide to Money Management by Matthew Amster-Burton at MintLife

Matthew’s Valentine’s Day column about how he and his wife manage their accounts. Do whatever it works. For us, a combined checking account works just fine.

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Money Market returns and the power of compounding by Allan Roth at CBS MoneyWatch

It amazes me that Vanguard’s Prime Money Market Fund still has $120 billion in it while paying 0.01%. It has almost as much as Vanguard’s flagship 500 Index Fund. Why would anybody leave money in the money market fund when they can earn 90 times more in Ally Bank savings account with full FDIC insurance?

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Bond Bubble And Vanguard Total Bond Fund by Mike at Long-Term Returns

Bubble, may be not, but there are many better choices than the Vanguard Total Bond Fund. Always remember you don’t have to stay in a bond fund to benefit from any rise in interest rates.

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Shares deliver the best long term returns, so why invest in bonds? by The Investor at Monevator

Stocks are called shares in the UK. That’s a good question, isn’t it?

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Posted on February 15, 2013 under News. Keywords: , , .

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One Comment on Friday Reading: Variable Annuity, Bonds, and Money Market Fund

  1. Monevator on February 15, 2013
     

    Hi, thanks for the link. Yes, it’s weird how stocks are called shares here in the UK.

    Actually, it’s even weirder, because we use both terms. One of our tax advantaged accounts, the equity ISA (a bit like US Roths I think) are called “Stocks and Shares ISAs”.

    Perhaps I’ll try to dig up why the terms diverged across the ocean, it could make an interesting read.

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