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I'm In

October 10th, 2008 at 05:04 pm

I just moved $3k cash into the market.

IT was money I have in a CD to plow back into the market at a later time (cash from 2006 - I could smell this coming and my gut told me not to invest it).

Anyway, today the gut says, "INVEST!!!!!" It was whispering this to me yesterday and I thought, "Eh, too much trouble."

But today my gut is screaming at me.

IT's extremely complicated, but since my catastrophic efund (about half of it anyway) is sitting in MMMFs (Cash) in our ROTHs, I was able to execute a buy this mornings. VG Total Stock Index, wherever it lands at the end of the day. (No lower price since I have been an investing adult, just about. I don't expect much from the market today. The DOW is not going to jump to 12k anyway).

Now, after this buy, a chunk of my efund is sitting in a CD elsewhere (ROTH), but I don't have to break it right now. Essentially, that's what I did. I still have my efund - it is now in a CD that matures next year.

The IRS rules are so convoluted though, if I do need it due to emergency, I will have to roll it over to my Fidelity account, and then withdraw it, to be tax free. Which could take weeks. Simply because the CD is a rollover and I can not take it out tax-free. But my ROTH at Fidelity has enough direct contributions to withdraw tax-free monies from.

Gotta love it...

I am okay with this. I am happy I do not have to break the dang CD right now.

Just a whole lot of tax complicated shuffling...


Because of my gut I Was more 75/25 stock/cash before all this mess and today I Am at about 80/20 which is pretty much my comfort level. All I really did was rebalance. I would have waited it out a bit otherwise. Well, I don't know, I may have rebalanced anyway today, with all these lows. Selling off some bonds and cash...

What a rebalance it was!

$3k may not seem much, but it's all I got. I am not compromising my efund as a whole, or my long-term investment plan. & anyway, $3k is a decent chunk of my portfolio. So it is a lot to me. A good opportunity. I would consider buying in another $1k if things get lower.

The annoying thing about mutual funds is I won't know my price until around 3pm here (west coast). I guess the plus side is I don't have to wait so long, being on the west coast.


I also dropped my VG MMMF to below the initial minimum ($3k). Does it matter? A lot of my funds have dropped below minimums due to the market. Most of them are no fees. (Like Vanguard - no fees for electronic statements - a while since I read all that fine print). So I don't know what that means. I've never dropped below for selling a chunk. I have just about $1k left. I may invest it too. We'll see...


P.S. Not attempting to time the bottom. I have a 30-year+ investment horizon and this is simply a great deal...

P.S.S. My efund is now $5k liquid cash, $4k ROTH MMMFs, and $3k ROTH CD. There is another $3k in that CD which makes up a cash part of my actual retirement portfolio (sans efund monies). Oy vey. I haven't decided how to keep track of all this... It's getting too complicated for my tastes. I guess it's all moot when the CD matures. One more year.

4 Responses to “I'm In”

  1. scfr Says:

    I understand ... It's very tempting. I just keep reminding myself that our particular plan is for regular contributions to conservative funds. It's been working so far. So ... If it ain't broke, don't fix it.

    The only market we've attempted a bit of "timing" in is the housing market ... That's more than enough excitement for me.

    If I were in your shoes, I probably would have done the same thing.

  2. PauletteGoddard Says:

    I put in an optional cash payment on my Procter & Gamble stock. I'm being very conservative in my individual stocks (an oxymoron, yes).

  3. Broken Arrow Says:

    Huh! Didn't realize you would be interested in going "in" right now.

    I'm "all-in" already, and as I have mentioned in the forums, have even shifted my defensive stocks to offensive ones.

    Now, let me add that I don't know if we've seen the bottom or not. In fact, I think trying to predict that is an exercise in futility.

    However, as I have also mentioned in the forums, the market is on a grand sale, and since I only go long, time is on my side. The credit market can't stay frozen forever.

    Oh, and PG should also benefit from an eventual rebound, PG. Big Grin

  4. monkeymama Says:

    Well, let's just say I didn't think I had any cash to spare. But the lower it got the more creative I got.

    I'm going to get in around $21/share. SWEET. (Last I rebalanced, and moved a chunk out of international, in February, I paid $32/share).

    I'm sticking with my boring indexes. Big Grin
    In general this simply fits in as a rebalance. IT's all I really did. I am not going lower than 20% cash/bonds. I know my personal risk limits.

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