Retirement

Fully-Funded My Roth IRA For 2008

I sent a check to my brokerage today, fully-funding my Roth IRA for 2008.  Even though I have until April of 2009 to fully-fund my Roth, I’ve decided to move in while the market is down and buy some shares of VTI, a total market ETF.

My friend Jim from Blueprint For Financial Prosperity has an excellent article about buying stocks when the market dips.  The last few days, the market, as a whole, has been down.  Instead of bemoaning the fact that my investments took a hit, I’m going to look at this “dip” as an opportunity to buy.

The money that is being deposited into my Roth IRA will remain there for (at least) 30 years.  Obviously, this makes my purchase a long-term investment.  Hopefully, the market will bounce back over the course of the next few months, but I’m “in it” for the long-haul.

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11 thoughts on “Fully-Funded My Roth IRA For 2008

  1. I also make contributions as early as possible in the year – I figure it gives my money more time to grow! But you’re right, when the chips are down, I sure can buy more chips!

  2. Wouldn’t you want a highest risk in your ROTH IRA, or not highest risk, but highest Tax exposure? I am suggesting CGMFX

  3. $5,000 invested in VTI should be worth around $100,000 in 30 years (or $40,000 adjusted for inflation). 100% tax free too! Well done.

  4. Well done! However, wouldn’t you want to spread it out over the course of the year just in case the market falls any further? I’ve thought of doing what you did but dollar-cost averaging makes me feel a lot safer than jumping in all at once because then I have no recourse if the market continues to fall.

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