Monday, February 2, 2009

Roth Decisions

Right now my 2008 and 2009 Roth savings are in limbo. Why? Because I can't make up my mind.

First, there's money I saved during 2008. I saved in an ING sub account because I thought I might want to invest in a new fund*. Most of the funds I've looked at require $2.5-3K for the initial investment. Since I didn't have that in January I decided to save and make a decision when I had enough money. I crossed over $3,000 in December but the decision is yet to be made. I know stocks are on sale and I have 30+ years for growth, but looking at performance (my main tool) is hard when just about all negative. I feel like I may as well be picking out of a hat.

Then there's the 2009 question. I only have $3,184 saved for 2008. Between January 1 and tax day (actual filing or April 15th, whichever is sooner) you can still contribute to the prior years Roth IRA. So, the funds we allocate to my Roth (8% of my salary) could go be 2008 or 2009 funds. By April I still wouldn't hit the 2008 limit. As a result (baring a major windfall) my amount for 2009 would be piddly. But that's just vanity getting in the way right?

Where are your Roth funds invested?

*My 2006 IRA is in a Vanguard Retirement Year fund but I think I want to branch out more.

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