Pick Two (401k Edition)

Tyler Linsten Personal Finance

…you can’t have the other.   Sadly, and even with the recent proliferation of indexing, most workplace retirement plans are just not very good. Combo 1: For most people it’s very possible to get a diversified portfolio at work, BUT, it’ll likely have elevated fees because the custodian of the plan has pumped the plan full of mutual funds that either give them a kickback on fees for the pleasure of being on the menu, or they’re proprietary funds so they keep ALL the expenses. Lovely, eh? Combo 2: For those with some low-fee options, I’ve noticed that these choices are usually limited to a single US large-cap equity index fund and a cousin for international equities, so these folks are stuck …

Nowhere to Hide

Tyler Linsten Investing, Personal Finance

Let’s say you’re a big football fan. Earlier this year, in May, you picked a Sunday this month to see your favorite NFL team play. There’s only 8 home games every year so you decided to pick a September game and shelled out a fortune to see your team play. You figured it would be the best chance for good weather and a good experience. Well, guess what? – it’s now a soggy Sunday morning on gameday and the forecast shows a 99% chance of the torrential downpour to continue through the evening. What do you do? Option A – You could try to sell your tickets on the secondary market (at a big loss) while also risking the possibility of both the forecast being …

Net Worth: Where Do You Rank?

Tyler Linsten Personal Finance

Thanks to a great share on Twitter by @Jesse_Livermore, we have this very interesting gem of a chart: Reading between the lines, the Under 35 cohort reveals a fascinating tidbit: a homeless “Millennial” with no assets and no debt has a higher net worth than 30% of his/her peers. Think about that one for a second! Just because you’re in a high (low) net worth percentile, it doesn’t have much to do with your specific financial goals but we all have a conditioned desire to be graded against our peers after all of that standardized testing in school, right? It’s a guilty pleasure in this case – if you’re in an upper percentile, that is. Now that I have you thinking about net …