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Archive for September, 2008

Ouch!

September 18th, 2008 at 10:49 am

Between Monday and Wednesday, I've lost almost $1000. My gut reaction is to lower my 401k contribution from its current level of 20% down a few notches, so as to let the money trickle into my checking account that is paying 4.5%.

Of course, before it trickled there, I'd be taxed on it. And then taxed on any interest it makes.

I'm torn: 4.5%, even with the taxes feels like a better deal than the negative 10% I've endured this week.

Then I sigh, and remind myself that I'm in this for the long horizon (15-20 years out) and that any additional contributions will be used to buy these funds at a discount.

If I were to drop to say, 18 percent, what would signal the opportunity to increase back up to the original 20%? Once the stock prices start getting more expensive to buy?

I should just leave it at 20%, be thankful that I'm buying at a discount, and take solace in the fact that I'm debt free and living beneath my means.

Just stinks, because it takes me a LONG TIME to make $1000. =(