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Posted: 4/6/2009 5:53:18 AM EST
I'm self-employed and decided I want to manage my own retirement account, so I opened up a SEP account with Scottrade. I plan on puttng $750 a month in there and currently have $1,500 cash sitting in it.

I'm semi-literate with trading/investing and continue to learn all I can. I did, however, lose my ass day trading last year.

What kind of strategy would the resident financial investment gurus recommend?

As an aside, I noticed my account limits me to $5,000 maximum contribution. My understanding was that the max was 20% of my net income (Schedule C) or $49k. Am I correct?
Link Posted: 4/6/2009 6:01:55 AM EST
My SEP limits me to $5000, I think. It was $4000 last year and is $5000 this year.
Link Posted: 4/6/2009 6:03:05 AM EST
The limit for traditional IRAs is $5k, but being self-employed, you may have additional options for tax deferred savings such as a company profit sharing/401k plan.

I'd consult a tax accountant on how to set something like that up if you want to put away more.
Link Posted: 4/6/2009 6:07:38 AM EST
AGE 25= 25% in Vanguard Ginne Mae Fund (Gov't Backed-Mortgages)
75% in Vanguard Total Market Index (.07% management fee)

AGE 35 = 35%/65%


AGE 50= 50% / 50%

Good Luck!


Link Posted: 4/9/2009 5:21:45 AM EST

Originally Posted By lonewolf223:
AGE 25= 25% in Vanguard Ginne Mae Fund (Gov't Backed-Mortgages)
75% in Vanguard Total Market Index (.07% management fee)

AGE 35 = 35%/65%


AGE 50= 50% / 50%

Good Luck!




Thanks!

You don't think it's a good idea to buy individual stocks?
Link Posted: 4/9/2009 7:41:45 AM EST
[Last Edit: 4/9/2009 7:44:32 AM EST by mags]
Originally Posted By bigsapper:

Originally Posted By lonewolf223:
AGE 25= 25% in Vanguard Ginne Mae Fund (Gov't Backed-Mortgages)
75% in Vanguard Total Market Index (.07% management fee)

AGE 35 = 35%/65%


AGE 50= 50% / 50%

Good Luck!
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>>>>>I certainly do not, you didnt learn the first time day trading? Long TERM like 30+ years you simply cannot beat the mkt itself so a purchase of the whole mkt makes sense as in Vanguard Total mkt, maybe some international and a total bond mkt % as well. IIRC 5k is the max contribution you can make but it changes every few yrs, consult a irs web page. The above is good advice but i'd suggest you findout what your comfortable with when it comes to risk/reward/loss/ <<<<<<<

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You don't think it's a good idea to buy individual stocks?
ABOVE!........ I messed up the position and am not typing it over since I only have 4 fingers on 2 hands!!!!

Link Posted: 4/9/2009 3:48:45 PM EST
Sounds like sage advice.


But where's the fun in that?
Link Posted: 4/14/2009 10:38:24 AM EST
Just wanted to add a couple of points...
1) My horizon is about 20-25 years.

2) The limit on my account is the online. I can make direct deposits to the account when I need to via the agent.
Link Posted: 4/23/2009 4:41:21 AM EST
I have an additional twist...
I also need to set aside money for my daughter's college. What would be a good vehicle for that? I would need to sart drawing on it in about 4 years.
Link Posted: 4/29/2009 2:50:36 AM EST
Link Posted: 4/29/2009 5:28:47 AM EST

Originally Posted By DVDTracker:
My self-directed retirement: Roth IRA, maxed out each year in a Vanguard Targeted Retirement fund. They handle asset reallocation as you get closer to retirement. https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList

Take a look at 529 plans for saving for school: http://clarkhoward.com/liveweb/shownotes/category/7/76/215/381/

Thanks.

Would you know how that works with Scottrade? How are the account maintenance fees handled, that type of thing?



I looked at the 529's. Unfortunately, that isn't an option as her tuition/fees/books are already paid for. I'm saving for her day-to-day living expenses while she's in school. I'll probably just buy CD's.
Link Posted: 4/29/2009 6:13:20 AM EST
Link Posted: 4/29/2009 9:25:53 AM EST
Don't these vanguard funds also buy "shares" in the company?

Link Posted: 5/13/2009 4:17:49 AM EST
OK, I put my SEP into the Vanguard Target 2035 Retirement Fund (VTTHX).

Turns out I am able to benefit with a 529 for my daughter, so her stuff is in an Oppenheimer Index Fund http://www.texascollegesavings.com.

This is boring.
Link Posted: 5/13/2009 5:21:50 AM EST
Link Posted: 6/5/2009 4:02:01 AM EST
Decided to buy one share of BRK-B and maybe some GLD.
Link Posted: 6/5/2009 5:07:11 AM EST
This is what a bought earlier this week for my IRA:

DBA (soft commodities - oil/food play)
SLV (PM play)
USL (12-month oil - prevents losses due to contango)
GLD (dollar hedge)
TBT (Inflation play)

I was way up this week - until today. I should have books my gains yesterday, but I'm struggling to decide how active I want to be in trading my IRA.

Good luck.
Link Posted: 6/17/2009 8:22:21 AM EST
You can put more into a SEP than $5K, most likely.

It's 25% of what you make up to a cap of around $48K.

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