Balaoko's point of view in Money Management

**balaoko** Thu Nov 10, 2005 6:02 pm

Balaoko's point of view in Money Management
I am very glad to share my oppinion about money management:

As we think about 401k, IRA and individual stock account, we may wonder how much to put in each account with our limited money. Here is my considerations:

In traditional IRA, we can invest stocks at our will and enjoy the tax deduction benefit. It is quite reasonable to put as much money as possible each year in the account and follow blast's portfolio. since blast's model gains very much each year, I hope it will continue the performance in the future, one can also consider a roth IRA instead of traditional IRA.

In 401k plan, we usually have no choice but some funds, and funds' behavior is apparently far beyond as good as blast's model. The only benefit is that it is tax deductable. so we can choose some funds like index based funds or value based funds. This is typically a passive investment, which is also good as we can enjoy the tax benefits.
In my opinion, we can put as much as possible to take advantage of the tax benefit.

If we have more money left, we might put it in our individual account and follow blast's model. since blast prefer long term investment, we can pay less tax compared with short term trading.

BTW, graham pointed out that one should put at least 25% of money in bonds, and blast does not do it in his portfolio, one may buy some bond funds in his 401k plan. I guess this is the best way to follow both graham and blast simultaneously.

**blast_investor** Thu Nov 10, 2005 6:16 pm

Now I don't know who is going to be the winner.

:lol: