Committed to the market

I am sitting tight. I am committed to the markets even though they have been horrible.  I was thinking today would be a great time for me to stop looking at the numbers daily.  I think the best move would be for me to check them in about 5 years.  I will keep funding my Roth IRA and doing the 401k at work as long as they keep matching it.  Eventually I know the break even will balance out and maybe I will gain back some of the money that has dropped in the last 6 months.  I remain optimistic that the economy will get better and the USA will remain strong.  Keep investing if you have the extra cash.  Try to stay debt free and remember even though times are tough to enjoy life!

This won’t last forever

I am a little down that the government bailed us out and the market is still tanking.  Why should the government bail out bad run companies?  I do not see them bailing out the small businesses who are struggling to make it week to week.  Just does not seem fair.  The stock market is tanking and my email box is getting flooded (not really) with people asking me if they should still keep funding their retirement accounts.  I will continue to fund my Roth IRA and 401k each week even though the market keeps going down.  The reason why I am doing this is because I know this (the market conditions) will not last forever and I am also not planning on retiring, for at least 30-40 years, so I have plenty of time to build it up.

2008 investing

I am in no way an investing guru but here are my two cents on how young people getting started out should invest. First and foremost if your employer is giving away free money take advantage of it.  If a company is willing to match on a 401k make sure you contribute the amount that they match up to.  For example let’s  say they match up to the dollar on 3%.  If 3% of your contribution from your salary is $50 that means your company will throw in $50 as well.  Each 401k and profit sharing plans are different but make sure you get the free money from your employer if they offer it. On top of getting the free money from your current company, set a goal of contributing to your Roth IRA. Max it out!  

If you company does not have a profit sharing program then fund your Roth IRA before the basic 401k.  If you have plenty of money leftover after your fund your Roth then you can fund your 401k or other investments such as paying down your mortgage.  I think 401k’s are a waste without some sort of profit sharing or company match from employers.   

So here are some things to plan for investing in 2008: 
Does your company have a profit sharing plan? If so, take advantage of it.
Are you funding your Roth IRA always? Max it out!

A must Invest

The Roth IRA was established in 1998 and offers a variety ways to invest.
A Roth IRA’s main advantage is its tax structure.  You may add only contributions to earned income that has been taxed already. Also keep in mind this is not tax deductible. 2007 limits are $4,000  and it increases in 2008 to $5,000.  If you are married both partners are able to add the maximum amount that is allowed for the year. 

Great article on why we all need a Roth IRA: