Monthly Update for Sept 2008

Not much to say for this month. Net worth loss of about 2%. Down to $201,516. A loss of about $4K from last month. The hysteria of the news and what is going on with our economy is scary to say the least. I have resisted the temptation to change my plans so far. All I wish for the Govt to do is to give an honest, hardworking saver like myself a chance at making it. Thus far I plan on keeping to my current plan. To recap, the plan is to max out my Roth IRA and contribute about $450 a month to my brokerage account from now until December. We are also going to keep our contributions to our 401Ks. I set that plan prior to all of the market "crisis" news of late. I have so far decided to stick with it and am telling myself that I am buying low. For our 401K and 403B plans I am more easily able to go along with the long term investment plan. For my taxable brokerage account I am having hesitations. For now I am going with the buy low mentality. I am considering at least looking for a bond position for my taxable brokerage account. Maybe even adding to my cash position. Seems easier to add to cash with a 3% guaranteed return versus buying a bond fund. I am amazed at how many people I work with have sold all their retirement holding and moved them to a cash position. They did this mostly after the market had lost over 10%. And worse is that these people are more than 10 years away from retirement.


I have also had a thought that all this economic mess could be the very reason why I end up hitting my goal of $1Million in the next 9 years. If I can buy shares at a much reduced price for the next 12-18 months maybe that will help me catch up. If in 2010 the Dow Jones reaches 14,000 my portfolio would have essentially exploded upward. Maybe that's just me trying to be positive.



I have also run some numbers at paying down my mortgage versus contributing to a taxable brokerage account. $1200 a month to a brokerage account or to my mortgage. What to do. In theory if I earned 8% on the brokerage account the choice is obvious. If I paid down my mortgage for a few years and then tried to refinance I could lower my monthly mortgage bill. Right now it's about $2,000 a month. There is also an emotional aspect to paying down the mortgage. A certain comfort. However, it also ties up your money. These are the things that race through my mind at times.

Hanging on one week at a time...Thinking long term...trying to do the right thing...