Before I start I want to give a nod to the Pearl Harbor boys getting together, perhaps for the last time. Deepest thanks to you and all the ones that wear the uniform THEN and NOW.
It is again today, with CROX and SNDK falling off the table that I am reminded why you don’t trade with your retirement money. That and how much I like the steadiness of dividend reinvestment programs.
I would urge everyone to look into creating a solid foundation of top mutual funds and dividend reinvestment programs before going off and trading stocks. And if you still have a balance on your credit cards… I would fix that before playing in the Street. Don’t get me wrong I really like trading and the research and the ups and downs and trying new strategies and well all of it. But I don’t think I would enjoy it as much if I hadn’t first strung a safety net. I was told and stick with one simple reminder:
“Don’t push any money into the market that you aren’t totally ok with it disappearing… forever.”
If you need ideas take a look at the post “Do you Roth?” Do a search on index mutual funds, dividend reinvestment programs, and ROTH IRAs. That should get you started. I’ll be doing a more in-depth piece on dividend reinvestment soon (it is the get rich slowly theory).
Trust me, build that solid money foundation so when you have a SNDK fall 3% from under your feet in a day it will be easier to remember the sky really isn’t falling.
That’s it for today, here’s to hoping you always remember Enron, until tomorrow keep your eye on your EveryDay Money.