Friday, July 24, 2009

What's next

Ok so great. We finally are over nine thousand on the Dow and everyone is wondering if this is the right time to get back in. People find themselves rejoicing because those 401ks are starting to look better.

They are not alone. I am right there with everyone on this. The main difference is that I am not going to change my strategy in the wake if a good few weeks on wall street.

The new rules still apply for me. Cash beats credit. And there's no security like money in the bank. And getting in position to have many choices in case things go south is the best balm to soothe the wounds of any disappointment in any part of life.

So all of the above having been said, I am finding myself more interested in my retirement contributions. You see, I am not getting any younger and I think that it is worthwhile to get as much saved as early as possible.

Many people cite compound returns as a motivating factor and it is true that it matters. Over the past few months though, it has become increasingly clear that stocks may not be a sure thing even over the long term. But that's the best way I can come up with to invest long term right now with my own money. Unfortunately I am not a high roller so there is not much that I can do.

So, it may not be a sure thing but it is what I am doing in my 401k and Roth accounts using mutual funds. The exciting part of this for me is that my company just started offering very low expense ratio mutual funds. Now my urge to transfer to vanguard is somewhat diminished.

No comments: