Sunday, August 31, 2008

My ROTH IRA

To date, my Roth IRA is worth $5,817.55, with $2,800.00 in savings for future purchases and that totals $8,617.55/$9,000.00 invested... (I've lost $382.45)... even now, if i had just stuck that money over at IGOBANKING in an account and marked it for Retirement and kept my mits off it... this month alone it would have gained $24.64.
  • $9,024.64 sits till the end of september... it becomes around $9,048--- end of october 9072---- end of november 9096... end of december $9,120.00
in the 25% tax bracket (which i will not be able to escape with no mortgage interest or anything to deduct minue the standard and personal exemptions...) I'd pay 30 in taxes, still a $90 gainin 5 months... not staring at a loss of 382.45...

Compounding interest only works if your making money every month.... i know the market is just experiencing a bad time... and i will continue to slowly buy more shares in my Roth IRA over the rest of the year (cause i don't pay taxes on whatever I earn...)

but part of me is wondering if i should stop my automatic payments in January 2009 and just let the money I put aside for retirement for 2009 sit there and see if my shares goes up in value??? I would keep saving for $5,000.00 for 2009 (but it would just be in a seperate account earning interest...

But would i then kick myself in the pants later for not buying low and holding till the shares were worth more money????

oh poo.
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2 comments:

  1. princessdominiqueAugust 31, 2008 at 9:43 AM

    I stumbled on your post but I'm wondering the same thing too, whether or not to stop mine. It's getting ridiculous! But they say that after the loss comes the gain.

    ReplyDelete
  2. paranoidasteroidSeptember 2, 2008 at 9:31 AM

    I am struggling with this very question right now, and you just have to keep telling yourself that you're buying everything at a discount. If we have finally bottomed out, you won't know until prices have risen (and risen enought for us to say that they probably won't dip to these levels again). By then it will be too late to buy at the lowest point.

    So yes, it sucks. I am right there with you. Just remember, you won't need this money until 40 years from now...

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