Do you have the stomach?
Most certainly we are in a recession. Gasoline prices are in the neighborhood of $3.25 per gallon, the Federal Reserve has been lowering interest rates for the past five months, grocery prices are rising based on fuel costs and the commodities market price increases.
So, what is a person to do? I recommend buying stock. I have upped our monthly purchase by several hundred dollars. It takes a strong stomach to resist the urge to sell when the market is in a decline. But if you have the fortitude, buying when the market is down can pay off in the long run.
We keep most of our retirement investments in relatively safe money markets and stock funds, through my 401K, but I do like to speculate with stock to a certain point. One lesson, I learned the hard way, is that frequent buying and selling can cause stress with a volatile market, and after commissions and taxes, nets only a meager gain. However, if you cost average (buy monthly, so the highs and lows balance, and keep for multiple years), then you can come out ahead in the long run.
So, with tax rebates coming for a lot of America, I say, either pay down debt or invest in a stock fund, and start building for a brighter future. One motto that I adopted after nearly going bankrupt 10 years ago, is to pay myself first - putting as much as I can afford into my 401K, and also having a cushion for every day expenses. Over the past 10 years, and with the support of my wonderful wife, we have been able to pull ourselves up by our boot straps and see a bright future for our retirements - some sooner than others (less than three days for my bride - you go girl). One down, one to go :o)
1 comment:
Love to play slot machines but never got to gutsy with the market. My 401 has taken good care of me and it was invested pretty much like yours. Good luck.
Joyce
Post a Comment