Restarting the 401k, Investing vs Debt ReductionPosted By Michael Koons |
Paul,
I'm not a genius but, I maintain my savings allocation for stocks and cash fairly consistantly as well as retiring debt. The only changes I make are for obvious over or undervaluations of the market, for instance May 2007 shifted much into fixed stuff and paid some more debt. I'm extremely leary of the market right now and am just packing cash in. I also use some cash when unforseen stuff happens like 9/11(buying opportunity for BA and GE) or oil at $145 a barrel(DUG). Stuff like that you just have to grab a bite of, if I can grab a 10-20% return in a short time like 2 months, I will. But now, my plan continues onward, my reallocation in my IRA in 5/2007 stays at 70% of new money going into cash still.
Mike
I'm not a genius but, I maintain my savings allocation for stocks and cash fairly consistantly as well as retiring debt. The only changes I make are for obvious over or undervaluations of the market, for instance May 2007 shifted much into fixed stuff and paid some more debt. I'm extremely leary of the market right now and am just packing cash in. I also use some cash when unforseen stuff happens like 9/11(buying opportunity for BA and GE) or oil at $145 a barrel(DUG). Stuff like that you just have to grab a bite of, if I can grab a 10-20% return in a short time like 2 months, I will. But now, my plan continues onward, my reallocation in my IRA in 5/2007 stays at 70% of new money going into cash still.
Mike