Financial Dictionary: Glide Path

In reading more of the business sections and financial literature, I’m continually disappointed by the amount of assumed knowledge in the writing. To be expected, probably, but I want to start making the effort to learn more of the vocabulary, as well as the principles behind good investments. Starting with:

Glide path (n.): the rate at which retirement funds change their asset allocations (mix between stocks and fixed) over time
In a sentence: Much of the controversy over target-date retirement funds is due to the lack of consensus around the correct glide path for these funds, and what the right percentage of equity one should have on the day of one’s retirement.
Further reading: Examining the Glide Path Methodology for Target Date Maturity Funds

401(k) Matching = Free $1800!

Since my company did pretty well this year, they knocked up the extra 401(k) Match a bit. They have a base matching program of $.50 on the $1, and a variable matching program depending on how well the company does. So based on this year’s performance they threw in another two quarters, and they are now doubling the amount I contributed to my 401(k) this year. The variable match amount for this year came to $1800, which has brought my 401(k) total in my company 401(k) up to $13,538. Thus far, I haven’t focused on a numeric goal for either this or my Roth account. At my company I’m contributing the maximum for matching (6% of my pre-tax income), and I’m contributing $250 a month for the Roth (8% of my takeaway pay).

Not interested in setting a numeric goal for myself – just too damn far away. Who knows what cataclysmic, world-altering events could take place between now and the time I retire. But, I do want to find some general, authoritative principles for retirement goals. Is 6% & 8% just about right? Too little? More than I really need? Because I would love to squirrel more away against my other savings goals too… In my preliminary googling, I haven’t come up with any percentage principles, so I’m going to do a deeper dive.

The only principles I’ve found are to max out each year. Last year I fell short of maxing out my Roth by $1200 so a ways to go – maybe this year, my goal should be to max it out. Does any one have a good rule of thumb for what percent of your income you should be contributing to retirement each month?

Earning / Shopping. Cool.

I recently purchased from one of the promos they give you on E-Miles and the airline miles did show up in my Northwest account, and on time to boot. So I wanted to give a Consumer Reports style shout-out to E-Miles. Sometimes I’m skeptical that I’m missing something in the fine print, but I needed this anyway, so it was a worthwhile experiment. If you haven’t heard of it – definitely sign up. They give you airline frequent flyer miles in exchange for your time viewing ad messages and quick 3-question surveys. Very worth it, even for just a break in the workday.

Secondly, I’ve gotten hooked on this website – Shop it to Me. A friend of mine met the guy who launched it out in San Francisco and it seems to be growing quickly and doing well. The premise is that you select the brands and stores you like up front, and then you get an email newsletter two times a week with links to individual products on sale. I’m not a big online shopper, but I do like it for one reason: gives you more visibility to what types of things are on sale if you do a little research (implication: a reminder that you should never really pay full price for things in the retail space). One setting I would adjust is the price ceiling for items they show you. I keep lowering mine, so I won’t be tempted by anything over a couple hundred bucks. And I invited enough friends to get a free $10 gift certificate to use on the site. Fun!

On the Job Front.

So, I applied for a new job in New York today... in a completely different industry and role for me.

And I heard back from them in the same day that they wanted to talk to me. Relocation isn't covered for the position, so that would be a lot... and I'm already wrapped up in applying for business school... and I can't imagine that they would pay me more than I'm getting now... especially not to have the same lifestyle in New York... not to mention that the Guy isn't ready to leave yet...

But it was still encouraging to know that what I'm doing now isn't all that's out there. Even in the middle of a pseudo-recession.

Also, in another intriguing note: personal financial advisers made the list of the top twenty fastest-growing jobs. So if this new role doesn't work out, I can always shop out my newly acquired Bookish knowledge.

(Frugal) Hungry Girl

The Guy recently gave me the Hungry Girl cookbook, and it coincides with the feeling that I should be trying to get a little bit more out of my grocery budget (in terms of savings and variety), so here goes:

First, Recipes I can Make with the Stuff in my Pantry:
Red Beans & Rice, Lima Beans, Mushroom Patty
Turkey Omelet with Pineapple Salsa, Turkey Sausage
Vegetable Barley Soup, Blue Corn Chips & Roja Salsa
Potato Pancakes, Carrot, Edamame and Black Bean Vegetable Blend, Peaches
Kashi Lemongrass Coconut Chicken
Kashi Spinach Feta & Mushroom Pizza
Whole Wheat Pasta with Vodka Sauce and Broccoli Cuts

Second, NEW Recipes from the Hungry Girl Cookbook:
Chop-tastic Veggie Salad [Grill a veggie burger patty and add vegetables to top a salad]
Rockin’ Tuna Melt [Skip the mayonnaise and add carrots for some texture]
Bake-tastic Butternut Squash Fries [Cut up squash in the shape of fries, Bake lying flat for 40 min at 425 degrees]
Crazy Good Turkey Taco Meatloaf [Add veggies (corn, peppers, onions) to traditional ground turkey]
Death by Chocolate Cupcake [Use diet hot cocoa mix, chocolate cake mix and Splenda as the base]
Mint Mocha Freeze [Coffeemate, sugar free sweetener, and instant coffee for a Starbucks substitution]

Travel Plans & Goals...

Headed to the Cape with the Guy for the 4th – we’re staying with his parents for the week, so hopefully it will be a relatively economical trip, but you never know. Things always seem to pop up. Also I added a travel fund to my list of goals (does it mean something that I just keep knocking that wedding fund down the list…?) I’ve decided that I’d like to take a nice long trip with the Guy before we (eventually, at long-last) pick up and move out of the Midwest. We’ll both be in transition at that point – him into a new job somewhere and me getting ready to go back to school. And I’m not sure if the right time is this Fall or next Spring (probably depends on how prices are looking), but I think $2500 should be enough for a lengthy budget trip. Maybe not, but it’s a start. I’m thinking South America – maybe a hiking adventure of some kind along the Inca Trail or perhaps checking out some of those great Malbec’s in wine country. We shall see. My goal is to save $50 a month in an automatic deduction and then whatever else I can afford at the end of the budget cycle.

The Convention

So my current city is hosting the Republican National Convention this year and the money and people influx this summer will be pretty impressive. Minnesota Monthly magazine is predicting that there should be more protestors (50,000 estimated) than attendees (45,000). The Guy is planning to rent out his condo to make some money. A couple thousand for the week! Too bad I can’t do the same, since I already rent! Rah!