My Personal Finance Journey

My Current Financial Goals – Short Term, Mid-term, and Long Term

Happy New Year Everyone! It is that time again. That’s right – time to update my financial goals for 2011.

I do this once every year as part of my goal to create what author David Bach calls a Purpose Focused Financial Plan. The goal of this system is to employ money in your life in a way that matches your life values and dreams. It is a very cool idea!

You can read more about my journey to create this system at the following links – Creating a Purposed Focused Financial Plan & My Personal Finance Journey’s Investment Strategy.

Updated 18-October-2011


Short Term (< 1 year) Goals:

  • Contribute $5000 (or $420 per month) to my Roth IRA with Vanguard this year (maximum allowed) – Complete. Have now contributed $5,000 so far this year. 
    • Because my graduate school employment doesn’t include the perk of a 401k, my tax-deferred investing options for 2011 are now exhausted. Because of this, I have begun pouring any extra money at the end of each month towards my condo home loan and washer/dryer installation savings. Nice! 

  • Reach net worth target for this year (not displayed here) – Ongoing – the equity markets don’t seem to want to cooperate in allowing me to achieve this goal, as it requires an ~30% increase in net worth. This may not be possible to obtain, but will attempt.
  • Maintain target 6-9 months of expenses in cash reserve fund in Dollar Savings Direct account –Complete – currently carrying 9 months worth of expenses in cash in my emergency fund account.
  • Rebalance mutual fund portfolio to meet asset allocation target %’s (75% equity, 25% fixed income overall) – Correct for now, but ongoing.
  • Obtain 15% ownership / equity in condominium – Complete – currently, I have 15.79% equity in my condo. I will be increasing this goal to 20% for the remainder of 2011.
  • Put together a will and have it reviewed by a lawyer – Will completed. Not yet reviewed by lawyer.
  • Continue to save money for trip to Grand Canyon – Ongoing – need to continue to evaluate when to take this. 
    • Currently, I have $340 saved up for this trip. My gut feeling tells me that this won’t quite yet be enough (probably needs to be in the neighborhood of $1200-$1500). To verify this, I just looked up the prices for flights going to Las Vegas (a nearby airport to the Grand Canyon), and they are currently priced at around $700 round trip. 
    • I am currently saving only $20 per month for this trip (and the associated life value that is assigned to it). I think I’m going to increase the monthly savings to $50 for the remainder of 2011 in order to slightly accelerate things. It would be nice to try to take this vacation in the late Spring time frame of 2012.
  • Upgrade condominium with investment in stacked washer/dryer combo – $1000 for unit, $1000 for labor/installation – Currently saving $87.50 per month for home maintenance and upgrades – Ongoing, but on track. 
    • As of September, I will have now officially accumulated 1% of my home value in my home maintenance savings account. From now on, I will be able to begin accumulating the $2000 that it will cost to get the washer/dryer in my condo. I’ve decided that since I have already maxed out my Roth IRA for the year and have no 401k available, I’m going to increase my monthly washer/dryer investment/savings to $200 per month to see if I can speed up the savings process for this. 
  • Invest $500 in Microloans for Latin America in 2011 ($41.67 per month) –Ongoing – Have invested a total of $417 this year so far to a working poor fund in Peru and Nicaragua and a fund that supports environmental sustainability in Latin America. Both of these funds come with a pretty nice 3.5% interest rate per year for three years. 
    • Note: I use Microplace.com to invest this money. It seems to work well and be dependable (my principal for some of my 2010 investments were paid back in September). I just logged in to my account, and it says that my money has been used to help 55 people down there! Pretty cool stuff if you ask me!
  • Donate $1,300 to Multiple Sclerosis Foundation in 2011 (5% of income) – Done. In the 2011 Tour de Vine event, I raised approximately $5625 to support finding a cure for this disease (with the help of company matches). My bike ride happened on June 11-12 of this year and was a huge success. I’m definitely planning to do it again next year (I’ve already signed up, in fact!) 
    • The other big donation thrust I’ll be doing for the remainder of 2011 and beyond is giving away 10% of my blog income each month, with 5% going to readers and another 5% going to charities that the readers select. If you’re interested in signing up for a chance to win, click here.
  • Save 3% of take home pay each month (after taxes) for Dream Account. On target – Have an automatic transfer each month from my Bank of America checking account to my ING Direct high yield savings account.
  • Save ~30% of blogging income (if any) in a high yield online savings account in preparation for 2010 taxes. I had been very bad at doing this until late this summer, but I finally have begun to put aside significant amounts of money for taxes. 
    • The next step on my radar is to send quarterly tax payments in the government so that I don’t owe huge amounts in April 2012 and get penalized. 
    • I will need to make sure to update my net worth calculation Excel spreadsheet so that these tax savings don’t get counted in my asset allocation percentages, thus skewing the numbers.
  • Implement dollar value averaging for my 2012 Roth IRA contributions. This will be done in the beginning of 2012.


Mid-Term (3-5 years out) Goals:

  • Continue contributing $5000 to Roth IRA each year and using dollar value averaging.

  • Reach intermediate net worth target (not displayed here, but is 2X my current net worth)
  • Own a rental property by 2016.


Long-Term (>5 years out) Goals:

  • Obtain a net worth of $1,000,000

  • Own a home free of mortgage payments
  • Own a vacation home in the mountains somewhere remote
  • Accumulate enough funds not have to work, but will probably anyways because I would get bored. 

      Is Your Attitude Hurting Your Bottom Line?

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      Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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      Today’s guest post comes to us from Sarah Barnett. Sarah takes a keen interest in financial issues. She believes that we can all benefit from some simple personal budgeting. She writes for Finance Facts, a personal finance website. You can read more about her methods by visiting her website at the link above!

      Is Your Attitude Hurting Your Bottom Line?


      Did you know that how successful you are in planning for your retirement has a lot to do with your attitude? That’s right. Being able to retire comfortably in 10, 20, or 30 years depends on what you do beginning right now. And, one of the first things many of us need to do is understand our attitude towards wealth and consumption.

      Do Not Keep Up With The Joneses

      Studies have repeatedly shown that, after the obvious income disparity, the biggest difference between the wealthy and the middle class is how they view money. For instance, wealthy households tend to routinely save 20% of their income. They also choose less expensive cars to buy, as well as clothes and everyday items.

      The middle class, however, tend towards conspicuous consumption. It is a race to have the newest and biggest SUV, designer labels hanging in the closets, and the biggest pool in the backyard. Driving down a middle class cul-de-sac, you will see manicured lawns and shiny cars. What you do not see is the monstrous credit card debt that many of those households are swimming in, and the fact that many of those vehicles are leased.


      What is wrong with leasing, you ask? Nothing, if you run a business and can use a company car as a tax deduction. However, if you are leasing a car solely because that is the only way you can afford that make of vehicle, which is a very common reason for leasing, you are making a poor financial decision.

      Time For A New Way To Look At Things

      Look, this is not about getting down on the middle class. Reams can be written about what the middle class contribute to society. The problem is, when you start to think about retiring and being comfortable, the spending habits of the middle class make that difficult to achieve.

      Are you ready to change all that? It can take some time to change a deeply ingrained belief, but it can be done. Remind yourself everyday that your self-worth and success is in no way decided by the kind of car you drive, or the zip code you live in. Teach your children this as well. You will be giving them a lasting gift if you do.

      If you are looking for some immediate ways to begin saving, experts agree the following tips are financially sound:

      • Pay yourself. No matter what the amount, make sure you pay yourself first. Put this money in a savings account. You will find that the more you save, the more motivated you will become. It is human nature.
      • Dine in more. Use restaurant dining as a special occasion only. If you add up the amount you have spent the last five times you went out, you will probably feel sick.
      • Once a debt is paid off, do not incorporate the money you were paying into your budget. It goes in your savings account, no questions asked.
      These are just a few tips you can begin using immediately to start saving money. There are many more out there. You will find that as your attitude towards money and consumption changes, you will be open to many more financial recommendations.

      How about you all? What aspects of your attitude help you to save most effectively?


      Share your experiences by commenting below!


      ***Photo courtesy of http://debbiking.files.wordpress.com/2010/07/attitude.jpg?w=300&h=247

      Important Aspects You Must Know About Bankruptcy Laws

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      Today’s guest post is brought to us by Wystan North. Wystan regularly writes on bankruptcy related issues like Ohio bankruptcy, Filing Bankruptcy In Ohio, Chapter 13 bankruptcy, and Chapter 7 bankruptcy.

      Important Aspects You Must Know About Bankruptcy Laws

      If you need to file for protection under the bankruptcy laws of Chapter 7 or Chapter 13 in order to attain debt relief, there are a number of aspects you should know about bankruptcy laws.

      These laws are designed to permit debtors who can’t pay their debts, to discharge or restructure these debts while still allowing creditors to regain as much of the monies owed as possible. Because the situation of the individual or legal entity, such as a company, seeking protection under the bankruptcy laws can vary widely, there are different kinds that cover specific situations. These laws are written in the different chapters of the United States Bankruptcy Code.

      In general, the Chapter 7 rules apply to personal or corporate liquidations, while those of Chapter 13 apply to personal reorganization bankruptcies. For large corporations that need to restructure huge amounts of debts and assets, the bankruptcy laws of Chapter 11 generally apply. Before you file for protection under the bankruptcy laws, you will have to know which chapter you must file.

      Means Test

      The choice is not yours; instead, you must take a means test that determines which bankruptcy laws apply to your situation.

      The means test measures your income against that of the state median, and if it is below it, you must file Chapter 7, or liquidation bankruptcy. However, if your income is above the state median, you must file for protection under the bankruptcy laws of Chapter 13.

      It is important to realize that the state you file bankruptcy in can have a huge impact on which bankruptcy laws apply to your situation. There is another aspect of bankruptcy law that is defined by your location: exemptions.

      Exemptions

      Exemptions are assets you may exclude from the bankruptcy proceedings, which means that you are allowed to keep them. Exactly which assets are excluded from your proceedings is defined by the bankruptcy laws of your state.

      When you file your petition, it is imperative that it complies with all necessary bankruptcy laws. If it contains any incorrect information, or it is not complete, the court will not accept it. A very important aspect to bankruptcy laws pertains to your creditors. If you are filing for protection under the bankruptcy laws of Chapter 7 or Chapter 13, it’s more than likely that creditors and collection agencies have been harassing you.

      Once your petition has been accepted by the court, the bankruptcy laws state that the Trustee must notify all your creditors of your filing and the automatic stay goes into effect. The automatic stay means that your creditors must stop all collection actions against you, even foreclosure, until a decision has been made in your bankruptcy case.

      How about you all? Have you ever had to file for bankruptcy? What are the key points that people need to know to get through the tough time in life?


      Share your experiences by commenting below!


      ***Photo courtesy of http://www.foreclosuredataonline.com/blog/wp-content/uploads/2010/02/bankruptcy.jpg

      Reasons Behind Credit Card Debt

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      Today´s guest post comes to us from Alban. Alban is a personal finance writer at Home Loan Finder, a home loan comparison website.

      Reasons Behind Credit Card Debt

      The only way to change your bad behaviors is to take responsibility for them, and while no one forces you to spend on your credit card or to buy things you don’t need and can’t afford, the reasons behind your credit card debt can actually be made up of a myriad of catalysts.
      The reasons behind credit card debt – which can lead to mounting stress, not to mention bills – can include:
      1 – Your Attitude

      This is where you need to take responsibility for your role in your credit card debts because it is easy to succumb to the consumerist, must-have-it-now attitude, and spend more than you earn. Saving is seen as old fashioned and who hasn’t rolled their eyes when their parents started talking about how in their day you waited to make big purchases and saved a little each week.
      However, when you are spending on credit you are living beyond your means, especially if you don’t repay your purchases right away before interest is applied. A credit card should be viewed as a short term cash flow solution, not as part of a long term financial plan.
      You can adjust your attitude towards credit cards by thinking about the consequences of each purchase in the interest you will be charged. By using some forward planning and restraint you can resolve this reason.
      2 – Your behaviors

      Your attitude towards money and credit may be the catalyst to make the purchase, but what you do afterwards is important to your debt levels too. One or more of these behaviours could be the reason behind your credit card debt:
      • You don’t repay your balance in full each month. If you can benefit from interest free days all the better, but even if you don’t it is important to repay your balance as soon as possible, and in full each month. When you have a revolving credit card balance you are charged interest again and again each month on the same balance and those purchases you made months ago have now doubled or tripled in cost and that item may have even outlived its usefulness before it even repaid. 
      • You’re unaware of your balance. Ignoring your credit card balance won’t make it go away, in fact the opposite is true. When you are aware of your balance you will know that you can’t afford to keep spending on your card, or making frivolous purchases, and should instead channel those extra funds to your repayments. 
      • Making large purchases. If you are in the market for a new fridge or television for example the store you are buying from may offer you a store card or credit terms. However, your own credit card interest rate will often be much lower than the store is offering you however, putting such a large purchase on your card means you need to pay it off quickly to see the savings in interest. 
      • Making cash advances. If you have interest free days on your credit card, cash advances often don’t qualify and will instead attract interest right away. Cash advances also often attract a higher interest rate than regular purchases so those withdrawals cost you even more.
      3 – The Cards

      Of course, credit card providers make it very easy for you to get into credit card debt because that is where they make their money – in fees and interest charges. As a result, your credit card balances are charged compounding interest if they are not repaid in full each month. This means that as the interest is added to your balance in one month, the following month interest is charged on the total of your balance and your interest charges, compounding your balance.
      Credit card annual fees can also be an unexpected expense of several hundred dollars each year. Fees are added to your balance as a purchase would be, and must be repaid before attracting interest.
      Your credit card may also be tempting you to spend with the promise of rewards for every dollar spent. While this sounds like a good deal, it is only worthwhile if you are making purchases you would make anyway – and not spending for the sake of rewards points – and you repay your balance in full within the interest free period because interest charges can eat into the true value of your rewards redemptions.
      4 – The Providers

      If a credit card company already has your business, they want more of it, and if they don’t have you, they’re willing to try and tempt you to them. As a result you will often find preapprovals and offers of an increased credit limit in your letter box and these are very easy ways to get into credit card debt you can’t afford.
      Plus, credit card approval processes are relatively easy to navigate and a bad credit history or lack of savings is often no barrier to obtaining a credit card.
      5 – The Unexpected

      Credit cards are a popular go-to in an emergency and as a result, the unexpected is a prominent factor behind many people’s credit card debts. If you face an emergency expense, if you lose your job or if you become separated or divorced, all of these things put pressure on your finances. However, your credit card company doesn’t care, and the debt must be paid. Unexpected expenses can also run in the vein of car repairs and unannounced school excursions which need to be paid, but as your credit card debt mounts, and its use becomes more prevalent, unexpected expenses can become the desperate need to a new outfit for a last minute party, or the need to stock the fridge with imported beers because friends are dropping in.
      Instead, if you face an unexpected event or an emergency situation, you can avoid succumbing to credit card debt and making the situation worse. You simply need to adjust your behaviours, because you can’t keep living the same lifestyle if you lose your job for example, because waiting for things to return to ‘normal’ can mean months of living on credit, and the creation of a whole new emergency expense when the credit card statements arrive.
      Therefore, if you are dealing with an unexpected life event, stop using your credit cards and start changing your spending habits. Have a budget and make sure your essential bills are paid, cutting back on luxuries until things become settled again.

      How about you all? What in your life has caused you to accrue some credit card debt?


      Share your experiences by commenting below!


      ***Photo courtesy of http://1.bp.blogspot.com/_ulIVxmgmnZE/SjXBaK-NoTI/AAAAAAAAAcM/C4hv6txXCjY/s400/thinking+man.jpg

      How Your Financial Situation Affects Your Life Insurance Rate

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      Today’s guest post comes to us from Denise Manchini. Denise is a manager with AccuQuote.com, a leading Life Insurance Quotes company, providing free term life insurance quotes from some of the top-rated insurance companies in the United States. To learn more about her website, please visit the link above.

      How Your Financial Situation Affects Your Life Insurance Rate

      For most of us, the economy has hit our pockets hard. Trying to make ends meet, who hasn’t missed a few credit card payments here and there? You may think nothing of it, but your life insurance carrier sure does.

      Besides looking at your health profile and driving record, life insurance companies look at credit scores to assess the amount of premiums you need to pay. This means that if you have been late on making payments, maxed out your credit card or filed for bankruptcy, the amount of life insurance premium you would need to pay could skyrocket. In some underwriting processes, having a bad credit score could double your premium amount!

      Is there any logic behind this? Insurers say there is a link between a bad credit score and the cost of insuring someone. When compared to customers with a good credit history, customers who have a poor credit score are more likely to make a claim on a policy. Experts believe that if you are not good at managing your finances, you may not be good at maintaining good health and fitness. Therefore, a low credit score just might push your premiums significantly higher than you expected.

      What should you do if you think your financial situation could impact your life insurance rate?

      • The obvious thing to do is to try to make your credit card payments on time in order to maintain a high credit score.
      • If you have already filed for bankruptcy, your existing life insurance policy should still be in effect to protect your loved ones. If it is a permanent life insurance policy, you may be given a part of the cash value for your personal expenses. However, if you do not have a life insurance policy, it is worth paying the higher premiums to get your life insured. Think of what would happen to your family if you were to die a premature death. Being financially protected by a life insurance policy could clear all your debts and leave your family in a good financial position to pursue their dreams and ambitions.
      • Realizing that the economy is struggling, many life insurance carriers look favorably on people who have low credit scores. Their underwriters look into your credit score history in more detail to check for patterns in your payments. After reviewing your case, they may be able to offer you lower premiums than other life insurance companies.

      In spite of your financial situation, you can still find the best rates through online life insurance quote providers. Make sure you are using a BBB-accredited site for a safe experience. Such providers have access to hundreds of reputable life insurance carriers. Fill in the questionnaire and allow a few seconds to run your criteria through their databases. Within moments you’ll receive the most competitive life insurance quotes that best suit your needs and pocket. Remember, where life insurance is concerned, even a little coverage is better than no coverage at all.

      According to Donald Hanson of the National Association of Independent Insurers, “Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home.”


      How about you all? Do you agree that your credit score and the way you handle money should be reflected in ancillary activities such as your job or credit score?


      Share your experiences by commenting below!


      ***Photo courtesy of http://farm4.static.flickr.com/3559/3370455325_93c1f81898.jpg

      How to Diversify When Investing in Mutual Funds

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      The following is a guest post from Jessica. Jessica is an author of articles about mutual funds and can guide you with information on how to profit by investing in mutual funds. 
       
      How to Diversify When Investing in Mutual Funds
      Know diversification before investing in mutual funds
      The diversification of mutual funds is a must. A diversified mutual fund can be defined as a mutual fund that is broadly composed of different types of instruments for investments. This can also be taken as one of the major advantages of investing in mutual funds. Another advantage is that there is a possibility for you to invest a relatively small amount of money and attain a diversified portfolio. In other cases, you will have to face many risks by purchasing individual securities.
      The difference between diversified and non-diversified mutual fund is that there is a minimal risk that is involved with diversified ones. There are layers of diversification of mutual funds – the first layer being by asset class. The primary assets are stocks, cash, cash, and commodities. The investment can be classified into any one of the above assets. There can also be classified further into smaller groups. And with these sub groups, there is less of diversification that is possible.
      Diversification rules to employ while investing in mutual funds
      • The first thing you need to do while investing in mutual funds and diversifying them is to gain a thorough knowledge about mutual funds and identify the objectives of the investments that are stated in the portfolio. The time that you will need the portfolio, the mutual funds rates, the amount that you are about to invest, the returns, and the risk factors must be carefully analyzed before constructing a mutual fund portfolio. 
      • Zero in on a good investment strategy that you think will work for you. With all the necessary details choose a strategy in accord with it. When a portfolio consists of high risk tolerance and a longer time period, the strategy is to have more mutual funds with greater risks and greater returns. For a balanced mutual fund mutual portfolio you need to include some low funds with risks. 
      • The rebalancing of your portfolio can be done by taking from the profits you earned from one shares and investing in the ones that you did not gain any profit from. 
      • With the amount of money you can afford to invest, you can choose the mutual fund rates accordingly and there are several kinds of mutual funds that include index funds, bond market and money market. Understand that every kind of mutual fund has risks. 
      • Before choosing the right one to invest in, know about mutual funds thoroughly, list out a few of the profitable funds and make a comparison between them and choose the one that suits your conditions.

      How about you all? What general rules do you employ when investing in mutual funds? 

      Share your experiences by commenting below!


      ***Photo courtesy of http://www.shareslounge.com/wp-content/themes/color_of_success/images/graph.png

      5 Ways to Avoid Bankruptcy

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      The following guest post comes to us from Bailey Harris. Bailey writes about home owners insurance and other finance related topics for www.homeownersinsurance.org.

      5 Ways to Avoid Bankruptcy

      Financial freedom is helpful in achieving a state of happiness and is among the most sought after and satisfying of human conditions. Unfortunately, if you’re not careful with spending habits, you could find yourself approaching that dreadful time when your debt threatens to overtake your income. If it does, bankruptcy is an option in extreme cases but is almost always something to be avoided. If the threat of bankruptcy looms, the following five suggestions could help you relieve the stress and avoid the pitfalls of filing.

      Don’t Overspend

      Of course, the best way to avoid bankruptcy is to not let your spending exceed your income. Pay attention to your bank statements and balance your checkbook every month. Don’t get caught up in the “keeping up with the Jones’s” mentality. If you can’t afford a new computer or that vacation cruise, don’t spend the money. Instead, upgrade your present computer and take day trips to local points of interest.

      Pay Your Monthly Debt

      If you find yourself falling behind on your monthly payments, take steps to stop the bleeding as soon as possible. It may hurt, and you may have to go without some things you deem necessary, but once you owe more than you bring in it’s tough to control. You find yourself playing catch-up and can continue to fall further and further behind. Pay your bills as they come in.

      Get Counseling

      There is no shame in facing financial difficulties. Everyone makes mistakes or goes through hard times. The shame lies in ignoring the situation until it’s too late. Sometimes it becomes necessary to seek the counsel of someone who’s been through your situation, or better yet, a credit counselor, a professional trained to deal with the trauma of owing more than you are capable of paying and who can advise you in ways to alleviate the problem.

      A credit counselor can not only help you find a way to pay your debt, but can also work with the people you owe to develop a payment plan that will be mutually beneficial. After all, bankruptcy not only hurts you, your creditors don’t get paid. It’s in their best interest to be as patient as possible. Another important point is to listen to your counselor, and take their advice…they’re there to help you.

      Cut Spending

      It may sound simple, but the key to paying off debt and avoiding bankruptcy is to make sure your cash income is greater than your cash outflow. It’s not just a matter of overspending, but once you fall behind it’s necessary to actually cut your spending. That may require a few sacrifices. Sit down and take stock of your spending habits. Beyond the necessities, such as food, clothing and shelter, find ways to save a few bucks here and there. Instead of renting a movie
      every night, watch broadcast television. Eat at home instead of restaurants. Wear that dress or shirt or pants a few more times, and resist the urge to buy the latest and greatest video game.

      Remember, a bankruptcy will affect your credit for years to come and should be avoided if possible.

      Debt Consolidation

      Lumping all your debts together and making one payment a month instead of several may help you manage your financial affairs in a positive manner. This could involve taking out a consolidation loan, an option only if you’ve managed to keep your credit score up, which is another reason to avoid bankruptcy. This calls for will power on your part, a mental and emotional decision to overcome your previous bad spending habits and make a dedicated effort to crawl out of a financial hole and avoid bankruptcy.

      How about you all? What methods do you use to stay out of the debt trap? Do you have any techniques you can share with the community that helped you significantly?

      Share your experiences by commenting below!

      ***Photo courtesy of http://talkmoneyblog.co.uk/wp-content/uploads/2008/10/debt-debt-trap.jpg

      Happy New Year From The My Personal Finance Journey Team

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      Just wanted to send out a quick Happy New Year greetings! Thanks to every one for making this year a success with our blog community!

      My family and I are right now on a 10 hour plane ride heading to Chile for a vacation. It should be quite the fun time!

      How about you all? Do you have any special New Years plans? Any vacations coming up?


      ***Photo courtesy of http://www.gibni.com/wp-content/uploads/2008/01/happynewyear.jpg

      Ask The Readers – Are You Investing In Your IRA for 2011 Today?

      My Personal Finance Journey Homepage

      OK OK – so I realize that being as today is Saturday, the financial markets won’t be open again until Monday, so the title of the post is not totally accurate.
      However, one of the things that I get very excited about around the time of New Year is to prospect of being able to contribute to my Roth IRA when contributions open up during the new year on January 1st. 
      So, my question for the readers is – will you contribute to your IRA during the first few days of January? Or, do you have to be a extreme financial nerd like me to do this sort of thing?

      Quick note – I just checked, and the IRA contribution limit during the 2011 year is the same as last year, $5,000 if you are under 50 at the end of 2011. See source information below from the IRS’s website.
      IRA 2011 Contribution Limits

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      ***Photo source: http://image1.masterfile.com/getImage/NjAwLTAwOTgzOTI1bi4wMDAwMDAwMA=AHCQKX/600-00983925n.jpg

      1st Ever Carnival of Passive Investing – December 31, 2010 – Hittin’ The Open Road Again Edition

      My Personal Finance Journey Homepage

      Welcome to the 1st ever edition of the Carnival of Passive Investing!

      As discussed in my introductory post for this carnival, the purpose of this carnival is two-fold:

      • To provide a forum to showcase articles and research in passive investing strategies (i.e. investing in ETFs, index mutual funds, etc. in such a way that one avoids employing active stock picking). By investing with the market, we are able to beat 70% of investment “professionals.”
      • To create a community of passive investment bloggers to connect and share expertise.
      Considering that the Carnival is less than a week old, I am proud to report that there has been a very positive response thus far from the blogosphere!
      The theme for this month’s Carnival is world travel! Below, you will find various images of some of the amazing places my family has had the privileged of seeing through the years. This theme is quite fitting since I am very excited about going to Chile next week for a family vacation! 
      Please enjoy!
      Listed below are this month’s top 3 editor’s picks! Congrats to Free Money Finance, PT Money, and Smart On Money for winning!
      1) FMF presents The Active versus Passive Decision posted at Free Money Finance, saying, “Why passive investing is a more reasonable approach to investing.”
      2) PT presents Dividend Mutual Funds Provide Protection From Complete Losers posted at Prime Time Money, saying, “The basics of dividend paying mutual funds.”
      3) Mr. Money Smarts presents 5 Reasons Why You Should Never Open A Roth IRA posted at Smart On Money, saying, “Why you should never open a Roth IRA.”
      View from the Porch at Our Hotel in Cabo San Lucas, Mexico – 2009

      Listed below are the top picks of this month’s awesome passive investing articles in the various Carnival categories.

      Financial Planning

      Mike Piper presents shares some valuable tax considerations to keep in mind as we are executing our passive investing strategy in 2011 Tax Brackets: What Will Change and How Should We Plan for It? posted at The Oblivious Investor, saying, “After the passing of the new tax act, what is going to change in 2011, and how should we plan for that?”
      Michael Pruser presents The Disappointing Status of Social Security posted at The Dough Roller, saying, “Social Security seems to be getting worse with each passing day but don’t lose hope yet!”

      Me at Mont Blanc, France – 2008

      Investing

      FreeFromBroke presents Busting Common Investing Myths – A Tweetup With Motley Fool’s Tom Gardner and ShareBuilder’s Dan Greenshields posted at Free From Broke, saying, “I had the fortune to see Tom Gardner of The Motley Fool speak. One of his pieces of advice? Invest for the long run and control your emotions.”

      Aussie presents Buying Shares posted at Australian Stock Market Blog, saying, “So you’ve managed to save a little extra money. You know that to make it grow you’ll need to consider some other investment options beyond term deposits and online savings accounts. You’ve heard that buying shares is one of the investment options you should consider – but what’s the next step? This article discusses how to get started if you want to buy shares as an investment.”

      FIRE Getters presents Tax FREE Money Market Mutual Funds! posted at FIRE Finance, saying, “Most astute investors are aware of municipal mutual funds also known as MUNIs. These funds invest in term debts issued by various state and local governments. In general, dividends and gains from muni funds are exempt from federal as well as state taxes.”


      La Sagrada Familia, Barcelona, Spain – 2008

      Personal Finance

      Michael presents Traditional and Roth IRA Contribution Limits posted at Consumerism Commentary, saying, “When filing your taxes this year, don’t forget to count the money you’ve deposited into your IRA!”
      Sun presents Six Money Moves To Make Before Year End posted at The Sun’s Financial Diary.
      Highest CD Rates presents What is a Jumbo CD? posted at Highest CD Rates Info, saying, “A jumbo CD can be a safe place to earn some extra money on a large sum of money.”
      That concludes this month’s edition. Submit your blog article to the next edition of Carnival of Passive Investing using our handy carnival submission form.

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      ***Photo courtesy of http://www.reyncoinc.com/Images/Travel%20Plane.jpg

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