Retirement Progress - Jul 07

August 14, 2007

We had a rough last week in July and things are looking bumpy in August as well.

But instead of being down and pessimistic about it, I’m actually excited to be able to purchase some really good stocks at a good price.

Are we at the bottom yet? Don’t know. The market can drop some more.

If you try to time the market, you’re going to lose. If you try to guess what the market will do in the next few weeks, you’re going to lose.

If you believe that the Market will do what it does best, then all you have to do is make sure you get a good price for your stocks. Don’t worry about getting the best price, because most likely, you won’t.

If you trust the Market, then you can trust that it will give you a solid return IN THE LONG RUN.

This is what the market is providing you right now. Might not be the lowest price you’ll pay, but as long as you think it is a good price, then you should go for it.

I’ve already put almost all the cash I had available in the market. My emergency fund is down to 5k again because I’m really impatient. Bad idea, huh? So another thing I decided to do this month is to start a CD ladder. ING Direct is giving 5.35% on a 12 months CD. That’s pretty good rate for a CD. This way I know I’ll have some emergency fund saved up. I hate losing money, and if I redeem these CDs ahead of time, I’ll be paying fees.