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Friday, May 7

My Frugal Miser - Funding my Retirement

I don't spend much time talking about my investments because, other than my retirement accounts, most of my investments are in rental properties. I have two IRAs: a ROTH IRA, which was converted from a regular IRA in 2002, and a Rollover IRA, which I opened last year when I lost my job. Being able to invest my 401(K) money in stocks that I get to choose was one of the few benefits that came from losing my job.

For 2010 I can contribute $5,000 to my IRAs. I added $500 in April, and last night I decided to transfer $2,500 more. As Warren Buffett likes to say, "Be fearful when others are greedy, and greedy when others are fearful." Yesterday there was a lot of fear in the markets. At one point the Dow was down nearly 10%. Just in case that downward movement continues, I want to have more cash available to invest in the stock market.

I love when the markets go down just as much as I love finding something I need on the Clearance rack at K-Mart. Why pay full price when you can buy when it's on sale?

Because of this transfer, I won't be able to pay down as much debt as I'd like this month. I'll get back on track next month, but I should still be able to reduce my debt a little in May.

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