July 7th, 2008
So, back in 1998, my Dad gave me $1,000 to put into an IRA. Being young and irresponsible, but not that irresponsible, I put it into the IRA as suggested (divided evenly between a growth and income fund and a large cap value fund*), but did almost nothing with it since. I have since contributed a grand total of $75 additional to the fund. I have never withdrawn anything from the fund.
That makes my cost basis on that account $1,075. As of today, the balance in that account is $1,203.13, a profit of $128.13, and an ROI of 11.9%. Considering the age of the account (ten years), that makes my annual yield a whopping 1.1%! Whoooo! Notwithstanding the tax benefits of an IRA, I’d have been better off putting this into a freakin’ savings account, or better yet, a CD.
This is intriguing to me, because if I had been actively investing in this account, it would have made the cost basis much more difficult to calculate, and I’d have no idea just how poorly it was doing.
At any rate, it’s awfully tempting to shake the proverbial Etch-A-Sketch, roll this IRA into some other accounts (preferably ones that don’t suck), and hope for better returns in the future. Any suggestions?
* If you’re interested, the two funds are SCDGX and KDCSX.
UPDATE: I should note that this isn’t the sum total of my savings — far from it. It’s just an account that I opened ten years ago and largely forgot about. I understand the ups and downs of the market, but none of my other long-term investment accounts are doing quite as poorly as these. Although I do need to also start contributing to this IRA, since it’s a Roth, and the long-term tax benefits are potentially substantial.
Categories: Economics |
13 Comments
July 7th, 2008
The Brewers just acquired Cleveland ace C.C. Sabathia (3.83 ERA, 1.23 WHIP, 122.1 IP in 18 games), trading away four minor-league prospects (including their top prospect) to get what in all likelihood will amount to a rental player for the rest of the season (Sabathia is an unrestricted free agent at year end).
I’ll put the question to our baseball-fan contingent: Good move for the Brewers?
Categories: MLB/MiLB, Sports |
7 Comments
July 7th, 2008
Via RealClearPolitics, McCain is attacking Obama on taxes:
Re: Credibility Gap: Barack Obama’s Vote To Tax Those Making As Little As $32,000
This year, Barack Obama returned to the United States Senate twice to vote in favor of a budget resolution which raises income tax rates by three percentage points for the 25, 28 and 33 percent tax brackets. This would mean a tax increase for those earning as little as $32,000.
While Barack Obama campaigns on a promise of no tax hikes for anyone but the rich, we once again find that his words are empty when it comes time to act. In both March and June, Barack Obama could have put the force of his vote behind his words. Instead, he decided that “rich” now means those making just $32,000 per year.
[Emphasis mine.]
When I read this, I did a double-take: McCain thinks that people who make “just $32,000 per year” are in the 25% bracket? As is typical for Republican tax rhetoric, McCain’s camp is banking on the ignorance of the American public. They’re counting on Americans simply not understanding the tax code.
According to the 2008 tax code, the 25% bracket for single returns (and married filing separately returns) starts at $32,550; one assumes that this is where McCain is getting that number. But it’s a gross mischaracterization to say that an increase on that bracket “mean[s] a tax increase for those earning as little as $32,000,” for two reasons: the standard deduction, and the personal exemption. For the tax year 2008, the personal exemption is $3,500 for a single filer, and the standard deduction is $5,450. This means that the threshold for people who would be affected by the proposed tax hike isn’t $32,000, as McCain claims, but $41,500. By no means wealthy, but an individual with that income shouldn’t be struggling, either. And it’s a real income almost 30% higher than McCain’s figure, not far off of the median household income (including family households).
Consider a single person making $42,000 — $10,000 per year more than McCain’s advertised $32,000 figure. That taxpayer sees an increase in effective taxation of a whopping $15 per year (or about 0.04%). Yep, that tax hike sure would put middle-class taxpayers on the express train to the poor house, no doubt about it!
More detailed analysis below the fold: (more…)
Categories: Politics, Taxes |
2 Comments
July 7th, 2008
I’ve always liked Robert Reich. More good reasons why:
Are there any economic advantages to being short? There are many. I use far fewer calories than the average person. I am much more economically and environmentally sustainable. I exhale less carbon dioxide into the atmosphere. I use up less space. I have a little house.
What are the disadvantages of shortness? I was bullied a lot when I was a kid. I was actually beat up because I was little. People frequently tell me in interviews that they were bullied as children. But no one ever steps forward and says, “I was the bully.” They don’t want to admit to being a bully.
What do you think playground bullies grow up to be? Right-wing Republicans.
He also recalls once dating Hillary Clinton in college:
The only thing I remember is that she wanted what seemed to me to be an extraordinary amount of butter on her popcorn.
Categories: General, Humor, News & Current Events |
1 Comment
July 7th, 2008
UPDATE: The starting lineups are out, and apparently my picks didn’t fare too well. Only two of my AL starters made the starting lineup (A-Rod and Josh Hamilton), although four of my other seven picks at least made the squad as reserves.
On the NL side, I did a bit better: four starters (Berkman, Utley, Ramirez, and Braun), but only one reserve (Martin).
Looking at each lineup as a whole, I think we see a problem with fan voting: by and large, the players represented seem to have been largely selected because they play for popular teams, not because they’re the best players at their positions. (I mean, Soriano a starter? He’s been hurt, and hasn’t played in a month. But his inclusion in the starting lineup is still a lot more defensible than Fukudome’s — the latter isn’t even in the top ten in any important offensive category.)
[END UPDATE]
For your debate and perusal, my All-Star Ballot (below the fold):
more…
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Categories: MLB/MiLB, Sports |
9 Comments
