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Coming Soon: Green 401(k)'s
Tweet Share on Facebook June 9, 2008 Comment (2)Good news for socially conscious investors: Greener 401(k) investment options are on the way. Currently, only one fifth of employees have access to socially responsible investing funds, according to this story. But survey data from the Social Investment Forum revealed that 60 percent of all plan sponsors anticipate adding SRI funds by 2010. (Currently, healthcare and government agencies are the most likely to offer SRI options, and most are funds from Calvert or Domini.)
What is SRI exactly? Funds that tout this philosophy typically invest according to social and environmental guidelines. For example, they may invest only in companies with sustainable business practices or with good environmental track records. But lumping all "green" or SRI funds together would be like ignoring the difference between vegetarians and vegans. As Morningstar points out, some green funds will own companies with human rights, labor, or environmental issues that might fail the screens of others.
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Of Diehards and Bogleheads
Tweet Share on Facebook June 6, 2008 Comment (21)It's official: The Bogleheads—proud disciples of Vanguard founder and index-fund pioneer Jack Bogle—have cut ties with the Vanguard Diehards message board, which has long been the most active discussion group on Morningstar.
In fact, the Bogleheads have dropped the "Diehards" moniker altogether, reports IndexUniverse. The group's new Web address is www.bogleheads.org. Apparently, the breakup was a long time coming: A group of volunteers originally built the new site to serve as a complement to Morningstar's forum, adding an archiving system and search engine superior to Morningstar's "paltry and glitch-riddled offering," according to this back story. Last year, the group added a new discussion site called the Bogleheads forum. "To make a long story short, the new forum has far surpassed the old one, raising the question of whether Morningstar's name is really much of a draw to indexers anymore," writes Murray Coleman of IndexUniverse.
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Stock Tips From a Millionaire Clique
Tweet Share on Facebook June 5, 2008 Comment (11)Some investors, frustrated by the rants, sales pitches, and absurd posts that muck up popular stock boards, have turned to more exclusive online forums to swap tips and analysis. One such is ValueForum, a fee-based investing community that keeps out the riff-raff with a $220 annual membership fee and monitored discussion boards. The site's focus is value and income investing, and the average member portfolio hovers around $1 million. But ValueForum doesn't track members' investment accounts; it's more of a place to socialize and kick around stock ideas with a group of serious investors, says David White, a 34-year-old member from Kennesaw, Ga., who manages investments for a few family members. I asked White to talk about life inside the forum. Excerpts:
What's the vibe of ValueForum, and who uses it?
It's like any other message board where like-minded individuals get together and bounce ideas off of each other. While there are some professionals on the board, most of the investors are retirees from nonfinancial backgrounds that want to avoid the usual BS. Since there's no one trying to sell products or services, you don't feel like you have to be on guard. We generally get along (although we can also be as cliquish as any high school) enough to hold national meetings once a year, which we call "InvestFest." About 300 people will show up, some from overseas. Members will frequently post, "I'll be traveling to XXX if anyone wants to meet and get together." Can you imagine wanting to meet people in person that you talk with on the Internet? -
A Young Investor's Cheat Sheet
Tweet Share on Facebook June 4, 2008 Comment (3)There's tons of financial advice floating around on the Web for novice investors. The problem is, many of the suggestions have already been drilled into your head by parents, professors, and other random advisers: Start saving ASAP. Avoid debt. Contribute enough to your 401(k) to get the company match. And so on.
After scrolling through several stories and sites for gems (specific or eyebrow-raising advice), I've rounded up tips and resources you can bookmark for future reference:
• Young investors should be stashing at least 7 percent of their gross pay in a 401(k), according to a financial planner in this TheStreet.com story. He also suggests you build up $15,000 to $20,000 in a balanced retirement fund (note: It's not clear if he's talking about a target-date fund, or a true balanced fund, which is a static mix of stocks and bonds), then think about adding funds with international or emerging-markets exposure.
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How to Finance a Mini Retirement
Tweet Share on Facebook June 3, 2008 Comment (3)Recently, a friend told me her goal for the year was to quit her job: take some time off, travel, visit family, and think about what she'd like to do next. (She's been at her current job for seven years now.) Maybe she should consider a mini retirement. According to Tim Ferriss, author of The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich, and blogger, a mini retirement is similar to a sabbatical or a vacation, except that it lasts one to six months and involves immersion into a nontouristy, new way of life.
Blogger Get Rich Slowly recently interviewed Ferriss about the logistics of the mini retirement—specifically, how to approach it financially. Here are a few highlights:
