Remember, you can contribute to your Roth IRA for 2009 until April 15th!
I have yet to contribute anything for 2009. Quite frankly, I’m upset that I did not put anything in at this point. However, it’s been a big year for me: buying a house and paying off the car.
Over the past 2 years, I have contributed the maximum amount to the Roth IRA. With the most recent economic crisis, that $10,000 turned into less than $5,000. Within a few months time, I lost one year’s contribution. I guess it could have been worse; I could have lost it all. Since then, I traded in the Global Real Estate for Global Bonds and opened a Roth IRA Savings account with ING Direct. Probably not the best choice to regain my money back. The Global Bonds (IGBOX) are only up about 7% compared to 29% with Global Real Estate (IDGTX).
I think the recent events with the market and buying a house made me realize my true risk tolerance. I do not like losing money – especially when I see what I put in and lost. For some reason, I feel differently about my 403b. I think it’s because it’s deducted bi-weekly and I don’t “see it” except on the quarterly statement. I still have yet to compare all the statements to see what I have really lost.
However, it’s good to have a balance of funds. I think I will keep my 403b on the aggressive side and make my Roth IRA fixed with savings, CDs, and bonds. The market took a large hit in the past week and I do not think we are out of the water yet. Remember, bonds are more attractive when the markets go south and are less attractive when the markets rise.
I should have a plan for my 2009 Roth IRA by the end of the month.