The BeancounterBlog Wish Fund: Your Ideas

Posted on 09. Oct, 2007 by in Saving & Investing

It’s often argued among personal finance bloggers whether or not you should post your net worth on your blog. Some believe it gives you some sort of “street cred” and allows readers to know that you practice what you preach. Others believe that sort of information is a little too sensitive for everyone to see. Personally, I belong to the second group. My personal finance information is just that… personal. Add to that the fact that my family, friends, and coworkers read this blog… and you can see why I’m a little hesitant.

However, I didn’t want to deprive my loyal (or not so loyal) readers of the excitement that comes with watching the tips, tricks, and advice I jot down each week come to life in a real world example. So, I’ve decided to create the “BeancounterBlog Wish Fund” which will serve as my surrogate net worth meter. With your help, we’ll invest the BeancounterBlog Wish Fund wisely and watch it grow until we’re so rich we begin to live off the interest.

But to begin this little exercise/experiment, I need to set some ground rules. I don’t want to make this example overly-complicated, but I also don’t want to throw the money into an HSBC online savings account and let it accrue interest at 5%. So, here are the guidelines that we’re going to start with:

  1. Monthly amount available to invest: $1,000. Some might say this is a bit too high, or perhaps not high enough. But this will represent 30% of a $40k after-tax salary, or 20% of a $60k after-tax salary. I realize that it’s VERY difficult to put away 30% of your income… but just roll with me on this one.
  2. We’re going to begin by using investment options available on Yahoo! Finance. As I mentioned, we’re going to start off simple, by using stocks, bonds, and mutual funds available for tracking on Yahoo! Finance. As the experiment progresses, we’ll throw in a few more complicated investment options and diversify our portfolio a bit more. But as a real world example, this is fairly realistic. Most people sign up with an eTrade or ShareBuilder account and begin making monthly stock purchases because they’re less familiar with mutual funds, bonds, foreign currency, etc.
  3. Assume broker commissions of $10 per stock trade
  4. Assume broker commissions of .30% for mutual funds
  5. Assume dividends are going to be re-invested

So what I need from you right now are ideas for investment opportunities. If you have a favorite stock you want me to invest in, or have a “feeling” about a certain mutual fund… let me know in the comments section below. I’ll be making the final decision by the end of next week, so be sure to add your comments by then.

As this project progresses, we’ll revisit the portfolio often to see what has worked, what hasn’t worked, and why. We’ll also begin to compare return percentages for each type of investment, and compare short-term vs. long-term goals.

So… I’ve got a $1,000 of cash for October, what should I invest in?

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6 Responses to “The BeancounterBlog Wish Fund: Your Ideas”

  1. Devin Reams

    10. Oct, 2007

    I love fantasy stock market games… are you going to truly invest this money or simply play?

    Personally I’d look at an emerging markets right now…

    DFEMX DFA Emerging Markets 36.10 Mutual Fund
    VWO Vanguard Emerging Markets Stock ETF 110.56 ETF

  2. Jason Guthrie

    10. Oct, 2007

    @Devin- I’m a big fan of emerging markets as well. For the past few years, there’s been extremely high growth and with the globalization of the economy, I don’t see that slowing down any time soon.

    As for actual money, unfortunately most of my own money available for spending is being put into a Roth 401(k) right now, with matching from my employer. However, as soon as that is at a level I’m comfortable with, this virtual exercise could turn into the real thing.

  3. Devin Reams

    10. Oct, 2007

    Fair enough. Looking forward to it, then.

  4. Tami

    21. Dec, 2007

    There are 2 sites that I would love for you to look into for me; first of all is Disney and the second is called CJB – I believe. It’s the company that I work for, and it is on the stock market; if that is not what it is called, I will get if for you; I have been thinking of investing. I would like to do something with a little bit of my money now.
    I met a grandmother the other day that takes her grandaughters on world excursions each summer; and I want to be able to do that with the girls; I may have messed up with my kids royally, but maybe I can be a fun grama…I am in the planning stages!! Seriously!! You want to advise me?

Trackbacks/Pingbacks

  1. Investing » The BeancounterBlog Wish Fund: Your Ideas - October 10, 2007

    […] unknown wrote an interesting post today onHere’s a quick excerptMonthly amount available to invest: $1000. Some might say this is a bit too high, or perhaps not high enough. But this will represent 30% of a $40k after-tax salary, or 20% of a $60k after-tax salary. I realize that it’s VERY difficult … […]

  2. www.bestfinancialadvisor.info » The BeancounterBlog Wish Fund: Your Ideas - October 10, 2007

    […] Jason Guthrie wrote a fantastic post today on “The BeancounterBlog Wish Fund: Your Ideas”Here’s ONLY a quick extractWe’re going to begin by using investment options available on Yahoo! Finance. As I mentioned, we’re going to start off simple, by using stocks, bonds, and mutual funds available for tracking on Yahoo! Finance. … […]

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