What Will Be Your Investing Strategy For 2009?

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

  1. I don’t let headlines affect my investing strategy
  2. 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.
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  4. 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?

  • http://www.budgetpulse.com Craig

    I will try to begin putting a little more money into a retirement fund. I also want to set up a long term savings account in mutual or index funds to let sit there for 5 yrs or so.

  • ekrabs

    Most of my portfolio is in passive investments, and as far as that goes, I haven’t changed a thing in asset allocation or contribution schedule (other than to stop contributing when it’s maxed), and I plan to do precisely the same in 2009.

    Now, a smaller portion of my money is used for stock trading. Truth is, I haven’t done anything the last month, and may not do a bit more into January. The short-term outlook doesn’t look good, but I could be wrong. I take that a day at a time….

  • pharmboy

    I’m only able to invest about 15K this year in tax deferred accounts because of our income (250K in 2008). my wife and I are in our upper twenties. I want to dump it all in the first quarter to hopefully capitalize on the upswing.

    Am I crazy to try buy load up while prices are low?

  • http://www.thestrump.com TStrump

    I like your goal of buying a rental property – I plan on doing this to, but not in the city I live (Vancouver)
    I’m increasing my monthly contribution – that’s right, I’m buying!

  • ekrabs

    pharmboy, I don’t think that’s a bad idea SO LONG AS it’s to buy-and-hold and it’s for the long term (to give it enough time to rebound and correct).

    Anything but that, I would not try to time the market.