Investing in the Stock Market
October 21, 2008
Why did you stop investing the market? That’s the question I received from several readers after I mentioned we had been hoarding cash in our ING account and would start investing it again through our new Zecco account.
IRA & 401k Contributions Halted
At the beginning of August I dropped my 401(k) contribution down to the minimum to get the match and stopped contributing entirely to our IRAs.
Almost all of our investments for the last 10 years have been into retirement accounts so we can’t touch that money for decades. We invested early and often into these accounts and if they grow as we hope they will for the next 30 years we should have a decent amount when we retire.
Changes in Investments
I decided that we needed some more accessible funds so I stopped the IRA investments and cut the 401(k) contributions way back. My wife did not agree with these changes but it turns out they may have saved us some money. Had I continued the investments that money would have taken a big hit over the last month. Instead it was accumulating in a high-yield savings account.
Now the plan is to put that money back into the market, maybe long-term it will help offset some of the losses our existign portfolio saw recently.
At some point in the future we will ramp our IRA and 401(k) contributions back up but for now we are investing in non-retirement accounts that will be accessible when we need the money over the next 10-15 years.
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