Comments on: 2006 Year-End Review III: Net Worth http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/ Sun, 08 Nov 2009 02:55:36 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Narrowing Down the Pack http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-54344 Narrowing Down the Pack Fri, 27 Mar 2009 04:18:24 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-54344 [...] for me on its own. One way to do that is buying equities that generate dividends. Last year, about 10% of our gains were from dividends, capital gains, and interests. Since long-term qualified dividends are taxed at [...] [...] for me on its own. One way to do that is buying equities that generate dividends. Last year, about 10% of our gains were from dividends, capital gains, and interests. Since long-term qualified dividends are taxed at [...]

]]> By: Investment Objective: For Income Or For Growth? http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-46736 Investment Objective: For Income Or For Growth? Fri, 14 Nov 2008 04:05:34 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-46736 [...] we are doing quite well in generating passive incomes from our investments. In 2006, we had a total of more than $16,000 in dividends, capital gains, and interests, among them a little over $9,000 are from investments in our taxable accounts. Conventional wisdom [...] [...] we are doing quite well in generating passive incomes from our investments. In 2006, we had a total of more than $16,000 in dividends, capital gains, and interests, among them a little over $9,000 are from investments in our taxable accounts. Conventional wisdom [...]

]]> By: Investment Objective: Income or Growth? | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-11863 Investment Objective: Income or Growth? | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Fri, 22 Jun 2007 18:52:33 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-11863 [...] we are doing quite well in generating passive incomes from our investments. In 2006, we had a total of more than $16,000 in dividends, capital gains, and interests, among them a little over $9,000 are from investments in our taxable accounts. Conventional wisdom [...] [...] we are doing quite well in generating passive incomes from our investments. In 2006, we had a total of more than $16,000 in dividends, capital gains, and interests, among them a little over $9,000 are from investments in our taxable accounts. Conventional wisdom [...]

]]> By: Where to Find Dividends? A Comparison of Dividend-Paying ETFs and Stocks | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-8967 Where to Find Dividends? A Comparison of Dividend-Paying ETFs and Stocks | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing Thu, 10 May 2007 15:36:54 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-8967 [...] for me on its own. One way to do that is buying equities that generate dividends. Last year, about 10% of our gains are from dividends, capital gains, and interests. Since long-term qualified dividends are taxed at a much lower rate (at most 15%) than short-term [...] [...] for me on its own. One way to do that is buying equities that generate dividends. Last year, about 10% of our gains are from dividends, capital gains, and interests. Since long-term qualified dividends are taxed at a much lower rate (at most 15%) than short-term [...]

]]> By: The Sun http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-6438 The Sun Wed, 11 Apr 2007 21:20:29 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-6438 Renee: I am not very familiar with SIMPLE IRA, but from what I read and my understanding, you may not be able to contribute the maximum to both Roth and SIMPLE. Since SIMPLE is one type of traditional IRA, and the maximum you can contribute in one year is $5000 for 2007. If you already maxed out your Simple, then I don't think you can put another $5K in Roth. Check IRS publication 590 for more details. Renee: I am not very familiar with SIMPLE IRA, but from what I read and my understanding, you may not be able to contribute the maximum to both Roth and SIMPLE. Since SIMPLE is one type of traditional IRA, and the maximum you can contribute in one year is $5000 for 2007. If you already maxed out your Simple, then I don’t think you can put another $5K in Roth. Check IRS publication 590 for more details.

]]> By: Renee http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-5880 Renee Sat, 07 Apr 2007 17:19:50 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-5880 If we already put $6K each (spouse & I) in a Simple; then can we still buy a Roth IRA each for $5K. We are both over 50. Thanks If we already put $6K each (spouse & I) in a Simple; then can we still buy a Roth IRA each for $5K. We are both over 50. Thanks

]]> By: jersey jen http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1689 jersey jen Tue, 23 Jan 2007 05:03:43 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1689 simply amazing. simply amazing.

]]> By: Tax Consequences of Our Taxable Investments for 2006 - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1667 Tax Consequences of Our Taxable Investments for 2006 - The Sun’s Financial Diary - Accumulating wealth is like building The Great Wall, one brick at a time Mon, 22 Jan 2007 15:46:03 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1667 [...] 2006 was a great year for investors, including us, as we saw big gains in our investments. While we were happy with the growth of our net worth at a peace that exceeded our expectation, paying back a chunk of the gains as taxes is not nearly as enjoyable. When I started to invest in mutual funds outside 401(k)s and IRAs, I didn't pay much attention to the fund's distribution and the funds I chose didn't pay out big numbers in the past. At that time, the number of shares we owned were small and the distributions weren't really a problem. As we kept adding shares, the distributions from dividends and capital gains were getting bigger and bigger every year. Now the tax consequences from these distributions can no longer be ignored.  [...] [...] 2006 was a great year for investors, including us, as we saw big gains in our investments. While we were happy with the growth of our net worth at a peace that exceeded our expectation, paying back a chunk of the gains as taxes is not nearly as enjoyable. When I started to invest in mutual funds outside 401(k)s and IRAs, I didn't pay much attention to the fund's distribution and the funds I chose didn't pay out big numbers in the past. At that time, the number of shares we owned were small and the distributions weren't really a problem. As we kept adding shares, the distributions from dividends and capital gains were getting bigger and bigger every year. Now the tax consequences from these distributions can no longer be ignored.  [...]

]]> By: The Sun http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1593 The Sun Fri, 19 Jan 2007 03:41:55 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1593 Ming: Probably I wasn't very clear about the contribution. It is actually we both contribute $4000, the maximum amount allowed, to our IRA accounts. The $8000 is a total number, not for each of us. Ming: Probably I wasn’t very clear about the contribution. It is actually we both contribute $4000, the maximum amount allowed, to our IRA accounts. The $8000 is a total number, not for each of us.

]]> By: Ming http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1569 Ming Thu, 18 Jan 2007 06:57:49 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1569 Hi, Sun, "We currently make between $160K to $190K per year before taxes". I remember you said you both contribute $8000 in 2006 for Roth IRA. The IRA is limit from full to zero when AGI (Adjusted Gross Income) is from 15k to 16k. I bet you AGI is over 15k, you might need to pay attention to IRA threshold. Hi, Sun,
“We currently make between $160K to $190K per year before taxes”.
I remember you said you both contribute $8000 in 2006 for Roth IRA. The IRA is limit from full to zero when AGI (Adjusted Gross Income) is from 15k to 16k. I bet you AGI is over 15k, you might need to pay attention to IRA threshold.

]]> By: The Sun http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1090 The Sun Fri, 05 Jan 2007 23:11:52 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1090 Bob: Yes, I did receive quite some dividends/capital gains for the funds hold in 401(k) accounts. But I think that really depends on your plan provider. For us, we have our plans with Fidelity and many of our funds are therefore Fidelity funds which pay dividends. And these distributions are indeed good for tax deferred accounts as you don't need to pay taxes for the distributions and if you reinvest the distributions, you can be more shares of the fund since for mutual funds the price usually drops quite a lot after the payout. If funds in your plan don't pay any dividend and charge high fees, it's probably not a good idea to max it out. But at least you should contribute the amount to get your employer's match (if there's any). Roth IRA is better because you can choose whatever fund you want, but it has a much lower contribution limit than 401(k). You may want to find other ways to save for retirement if 401(k) isn't your best choice. Bob: Yes, I did receive quite some dividends/capital gains for the funds hold in 401(k) accounts. But I think that really depends on your plan provider. For us, we have our plans with Fidelity and many of our funds are therefore Fidelity funds which pay dividends. And these distributions are indeed good for tax deferred accounts as you don’t need to pay taxes for the distributions and if you reinvest the distributions, you can be more shares of the fund since for mutual funds the price usually drops quite a lot after the payout. If funds in your plan don’t pay any dividend and charge high fees, it’s probably not a good idea to max it out. But at least you should contribute the amount to get your employer’s match (if there’s any). Roth IRA is better because you can choose whatever fund you want, but it has a much lower contribution limit than 401(k). You may want to find other ways to save for retirement if 401(k) isn’t your best choice.

]]> By: sfmoneygal http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1019 sfmoneygal Thu, 04 Jan 2007 01:32:28 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1019 I'm really amazed that you've saved so much on that kind of income! I don't know many in that income bracket that save 40%. You've set an incredible example. I’m really amazed that you’ve saved so much on that kind of income! I don’t know many in that income bracket that save 40%. You’ve set an incredible example.

]]> By: The Sun http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1012 The Sun Wed, 03 Jan 2007 22:23:39 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1012 yabadaba: I try not to disclose how much we make on my site as this is probably the only private I keep with only us (all the others are real, though :D). Since you asked, I can give you a range. We currently make between $160K to $190K per year before taxes. Our salaries are the only source of incomes. But there is guarantee of how much we will earn in the future, could be more, could be less. We want to save as much as possible when we can. moneysmartlife: Yes, we have a quite high saving rate. But things may change next year if we get a bigger house. Actually, I think any rate above 20% is good. yabadaba: I try not to disclose how much we make on my site as this is probably the only private I keep with only us (all the others are real, though :D ). Since you asked, I can give you a range. We currently make between $160K to $190K per year before taxes. Our salaries are the only source of incomes. But there is guarantee of how much we will earn in the future, could be more, could be less. We want to save as much as possible when we can.

moneysmartlife: Yes, we have a quite high saving rate. But things may change next year if we get a bigger house. Actually, I think any rate above 20% is good.

]]> By: Bob http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1010 Bob Wed, 03 Jan 2007 22:13:06 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1010 Sun, Did you get any Dividends or Short term and long term distributions in your 401K funds ? The reason I am asking this is because I hold about 5 diversifed funds whose ticker is not available to be tracked like other funds and none of them paid any dividends or distributions.I am little pissed because all dividends and distributions are supposed to be good if held in a tax deferred account like 401K or IRA.For my Roth IRA i invest in a target allocation fund and have got substantial dividends and distributions.At this rate I am thinking of not putting any money in the 401K because all i see are asset charges and admin fees Sun, Did you get any Dividends or Short term and long term distributions in your 401K funds ? The reason I am asking this is because I hold about 5 diversifed funds whose ticker is not available to be tracked like other funds and none of them paid any dividends or distributions.I am little pissed because all dividends and distributions are supposed to be good if held in a tax deferred account like 401K or IRA.For my Roth IRA i invest in a target allocation fund and have got substantial dividends and distributions.At this rate I am thinking of not putting any money in the 401K because all i see are asset charges and admin fees

]]> By: moneysmartlife http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1006 moneysmartlife Wed, 03 Jan 2007 20:14:40 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1006 Wow, a savings rate of 40%, that's fantastic! I thought we were doing well at 30%, I must say I'm jealous. Thanks for setting a good example for the rest of us. Wow, a savings rate of 40%, that’s fantastic! I thought we were doing well at 30%, I must say I’m jealous. Thanks for setting a good example for the rest of us.

]]> By: yabadaba http://www.thesunsfinancialdiary.com/about-me/2006-year-end-review-iii-net-worth/comment-page-1/#comment-1005 yabadaba Wed, 03 Jan 2007 17:08:32 +0000 http://www.thesunsfinancialdiary.com/2007/01/03/2006-year-end-review-iii-net-worth/#comment-1005 how much is your gross household income? I ask because you have saved 87k+ in the last one year. how much is your gross household income? I ask because you have saved 87k+ in the last one year.

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