We all had a rough year with the stock market, and we all know how much money our 401(k) and IRA lost this past year. We’ve also seen our home values drop, and we’ve watched our friends and family go through painful foreclosures. So, where do we invest our money? CD’s? The banks are going out of business. Money markets and bonds? Sure, if you want your money to rot. Stick it under your mattress? Hopefully, you won’t stick it under your mattress, but I have a feeling that some of you are contemplating it!
What I Will Be Doing
My wife and I will start contributing to my IRA again, and in August, we’ll start contributing to her 401(k). She has to wait a full year before she can start contributing to her 401(k). She gets a company match on her contributions, so we don’t want to miss out on the free money. We have contemplated investing in a rental property, but we realized that we will not have enough money to put towards it until the end of 2009. I think this is a good thing, because the housing market probably hasn’t hit rock bottom yet.
Why I’m Continuing to Invest In The Stock Market
- I don’t let headlines affect my investing strategy
- I am 27, and my goal to retire is at age 60. I have 33 years to let my money work for me, and I am confident that the stock market will continue its long track record of above 10% growth.
- I believe in the American economy. Even though I believe that there are politicians trying to turn us into a socialist country, I believe that the American dream will never leave the hearts of this country, and therefore, entrepreneurship will continue to thrive.
So, have you thought about your investing strategy 2009? What are your thoughts?