In October, I wrote a previous post on how I planned to allocate my Roth IRA investments. Well today (1/25/08), after much strenuous research and the market dropping to records lows, I decided now was the time to act. Many of the investments I had been looking at dropped significantly on Wednesday (1/23/08). I felt pressure to buy but I had yet decided exactly on which funds I wanted to buy. Certainly, I didn’t want to act out of haste without properly reviewing the expense ratios and such of each of the investments I was considering. (more…)
February 10, 2008
January 25, 2008
It wasn’t until a recent episode of Suze Orman did I fully grasp the potential of IRA’s and the power of compound interest. When you sit down and work out the math it’s really quite amazing how simple steps we can take while we’re young, say, saving $100 a month, can turn into millions by the time we retire.
With Roth IRA’s you can deposit up to $4,000 per tax year. (5k starting in 2008 ) You don’t have to put in that much, it could be $25 a month or $100 a month, whatever you can afford. You put it in with after-tax dollars and it grows tax-free. So that when you pull the money out when you’re 59 1/2 (or later) you don’t owe capital gains taxes on all the interest you’ve earned. Any other regular investments you do have to pay taxes say, if you have stocks/investments outside of a Roth IRA account. (more…)
October 11, 2007
Now as you know, I’ve begun investing my Roth IRA money. I bought my first set of stocks and would like to have the bulk of my portfolio in nice, save and secure mutual funds. My goal is to achieve a well diversified portfolio.
I’m looking to invest my portfolio like this:
80% Mutual Funds
5% Individual Stocks
As I’m planning to invest a huge chunk into mutual funds for the long run, I want to make sure to be very selective. But quite honestly, there’s hundreds of funds out there and I don’t know where to start. (more…)