Retirement Nestegg Report – July 2009

Retirement Nestegg Report – July 2009

My retirement nestegg report for this month – funny how people say the economy is horrible and you’d be an idiot to put/keep money in the stock market today and yet I’m very close to nearing an all-time high for my retirement nestegg. Had I listened to the naysayers and took my money out when things were ugly I’d be sitting on $55,000 in the bank earning next to no interest. Instead just 6 months later I’m sitting at nearly $89k 🙂 The stock market is for the long-term and you should never react to short-term fluctuations (talking years here) in the market. If you can accept the good returns when the market is humming then you have to also be able to accept the poor returns when the market is not. They key is to always stay in the market if you want to create any kind of long-term wealth accumulation in the market.

Traditional Rollover IRA – $10,013.28 (+12.32%)
My Roth IRA – $28,279.91 (+6.56%)
Wife Roth IRA – $15,786.60 (+10.71%)
Current Traditional 401k – $34,740.08 (+13.77%)

Roth/Traditional % = 49.61% (tax free)

Total Retirement Nest Egg $88,819.87 (+10.68%)

  • You were so close!!! Hey, I think you should be pretty proud of yourself for taking risks when very vew wanted to. You would have been definitely sitting on a little more than half of what you have now. I would love to be a “hundredthousand-aire” (thank you Chuck Schwab) by the time I’m 30. I’ve got a little less than 7 years. So I’ll be reading your blog so that I can make that dream come true. I also have a blog that tracks what I’m doing, so check it out some time!

  • MFJ

    I actually have until next month and well my goal is only on my contributions not the current size of my nestegg. I also decided not to rely on any matching contributions by my employer which if I add up all of my vested matching contributions I actually will make my $100k by 30 goal. Anyway its a fun goal and I know I’ve at least got a good start and am heading in the right direction.

  • Of course you actually want to be dumping the money into your retirement accounts when the market is low. I had a great lesson about this earlier in the decade.

    I went to work for a company in 2000 just around the top of the market. I worked for them until 2003 and dumped money consistently into an S&P 500 index fund in my 401(k) the whole time. As you know, the market basically went down almost the whole time! I rolled the money over to an IRA in early 2004. Although the market had recovered substantially by then, it was nowhere near the high in 2000, and I was surprised to learn that the total amount of money in my account was basically about the same as I had put in. Dollar cost averaging through the trough in early 2003 had in fact worked out.

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