A transplanted Southern Californian living in North Dakota Idaho, with some insights on life with deaf dogs, a gluten free spouse, and the occasional mischievous garden gnome. Thank you for visiting and I hope you enjoy.

Saturday, February 28, 2009

IRA Time

I know that with the market in its current state, the last thing that may be on your mind is plowing additional money into the stock market. We may not be at a market bottom and there's no way to predict how low we'll go, but we're probably pretty close, and for those with a long investment horizon (anyone with 15 to 20 years till retirement), you should probably make a contribution to your IRA or Roth IRA, if indeed you are eligible.

If it makes it easier to stomach, keep in mind that it is extremely difficult to time the market bottom perfectly and any gains you may hope to make by timing it could be offset by being stuck on the sidelines when the rally finally occurs.

Indeed your current year contribution may go down a bit if the market continues to decline over the next several quarters, but overall dumping money into your IRA is a no-brainer. Here's a few articles on IRA and retirement accounts that I have floating out in the ether....

How to Open a Roth IRA

401(k) vs. IRA

Remember that IRAs provide tax protected status and if nothing else, this can make them better than ordinary investment vehicles, but keep in mind that everyone's situation is different, so contact your tax advisory or CPA.

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