October 7, 2008

Blood On The Streets

Wow, I just checked our retirement accounts after having not looked at them for 1 week and they dropped a total of another $3,000. So, we did what any sensible young couple would do and contributed $500 into our Roth IRAs.

I like this quote from William Bernstein, author of "The Four Pillars of Investing":

"A young person saving for retirement should get down on his knees and pray for a market crash, so that he can purchase his nest egg at fire sale prices."

I don't really want to see a market crash, but when there is blood on the streets, we're buying!

7 comments:

Anonymous said...

Every dark cloud has a silver lining... one has to make the most of the few advantages of the current market.

1MansMoney said...

Sammy, I agree 100%.

-1MansMoney

Mike said...

Do you contribute the maximum every year to your Roth IRA? I just opened mine this year and am still trying to learn.

1MansMoney said...

We contributed the max to our Roth IRAs last year ($4,000 each), but are only at the half way point for this year. We're going to bust our butts trying to get as close as possible to $5,000 (each) in contributions this year.

-1MansMoney

Anonymous said...

I am very cautious in general, and frugal, so for the last few years I've been purchasing Canada RSP Bonds (Retirement Savings Plan bonds.) Although the interest is pretty low, between 2-4% historically, I still don't pay tax on what I put in, just like any other retirement plan, and there are no fees, and best of all -- the money is guaranteed. So I haven't lost a cent, thankfully.

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Anonymous said...

wow...you are investing money in stocks/investment account when you have a student loans?!? that's nuts....pay that off and get rid of it...then move on to saving for the future....

1MansMoney said...

Hi Anonymous - The student loan is at a good rate and the interest is tax deductible. So, for us, it does not make sense to pay it off when, long term, we should get a better return from the stock market.

-1MansMoney