Now that the smoke has cleared....

[Fern]

Re: Now that the smoke has cleared....

Hope i'm not repeating what others have said, didn't have time to read all replies, but while you've got $$ invested in in the index fund and mutual funds generally, why not take a closer look at what your annual fees are, which can really erode your returns. With all that cash, you might also want to focus on tax-efficient mutual funds, those that typically do not throw off a lot of taxable gains.

[kv968]

Re: Now that the smoke has cleared....

These are NY tax-frees from T Rowe Price:
T Rowe NY Tax-Free Money Money Market
T Rowe NY Tax-Free Bond

[kv968]

Re: Now that the smoke has cleared....

I hope I'm not crashing the party, but taxes should never be the primary factor when selecting an investment.

I agree, they shouldn't be the primary factor. All I'm saying is that they should most definately be taken into consideration when chosing funds and where to place them as the situation dictates.

[humandraydel]

Re: Now that the smoke has cleared....

Yeah, I know, you guys are looking at this in terms of pure numbers and calculations - it's my beleif that the philosophy of money goes way beyond finding a way to get the most effective yield.

Somewhere in the middle lays the balance - a balance between being squirrelly and the investing philosophy of "Die Broke."

I agree with you that there is a balance. In fact, tax advantaged accounts HELP you find that balance, because you don't have to save as much!

Duchesse, how old are you? What are you really trying to do with this money? You say "generate income" but 5% (15k) isn't enough. How much net income do you want in a year? The Vanguard NY municpal bond fund is only yielding 3.8% right now. If you aren't going to be in a very high tax bracket then munis are probably not for you.

If you need more than 5% then I suggest sticking some into a tax efficient fund like Vanguard Total Stock Market Index. Investing a decent amount into equities is the only way you are going to generate much more than 15k a year. There are several options for high yield investments, but I think they are all too risky for you.

[Duchesse]

Re: Now that the smoke has cleared....

I agree with you that there is a balance. In fact, tax advantaged accounts HELP you find that balance, because you don't have to save as much!

Duchesse, how old are you? What are you really trying to do with this money? You say "generate income" but 5% (15k) isn't enough. How much net income do you want in a year? The Vanguard NY municpal bond fund is only yielding 3.8% right now. If you aren't going to be in a very high tax bracket then munis are probably not for you.

If you need more than 5% then I suggest sticking some into a tax efficient fund like Vanguard Total Stock Market Index. Investing a decent amount into equities is the only way you are going to generate much more than 15k a year. There are several options for high yield investments, but I think they are all too risky for you.

To answer your questions: I'm 43yo and I am trying to "stay afloat" in NYC until my youngest child (14yo) learns to fly. I already know that 15k is not enough LOL. I don't think muni's are for me I don't have enough moola.


I believe that two heads are better than one, that's why I'm trying to get as much info and suggestions as I can. Ultimately the decision is up to me but I am open to the suggestions of more experienced investors. I know my limitations.

As for net income? I can function comfortably with $3500/month. I guess it's wishful thinking to believe I can generate this much.

[Duchesse]

Re: Now that the smoke has cleared....

I feel that I am already fully diversified, (up to my risk tolerance ) my plan is to spread the funds over the vehicles I already have (MM, CD, T-bills, I bonds, stocks, ETF's, index fund, mutual fund,) and add the ETF's mentioned above. Anymore suggestions.

Help!

I know I've beaten this horse to death, but I had to be sure. I think I'll stick to my original plan, add The Vanguard Total Stock Market Index (after research of course and if push comes to shove I do have some rentable space.