Take a look...
This explain better than I can. But with my broken english most people can always explain it better than I do.
The question is about building a cash cushion at the same time trying to maximize your 401(k) and Roth IRA investment:
Building a Cushion from CNN Money.
So take a look at what you are doing and see if it make sense to you.
Anyother way to invest long or maybe short term would be investing throught Dividend Investment Plans (DRIPs).
DRIPS is a way for their shareholders to acquire additional shares at a very low cost. DRIP plans enable investors to automatically take any dividends paid by a particular firm and invest those funds back into the company's stock, often at a discounted price. This discount can range from one to ten percent of the stock's current market value. In addition, most DRIP programs charge either very low transaction fees, or in some cases no fees at all. (Credit)
Take a look at what its benefits are from this site:
I am still looking into them. Post your opinions or experience about this kind of investment plans.
Comments
Whenver you can get employer matching, take the free money. As much as you can dump into an IRA, dump. Basic sound advice, I would think.
The DRIP feels like a distraction; if your valuation or market analysis tells you to buy/sell a stock, buy/sell regardless of the DRIP.
Unless you are willing to make a hobby or a living out of investment and trading, I say put your money in 1 or 2 parts indexed stock funds and one part bonds (ala Graham). Don't play in the markets with money you can't loose until you have a history of success a year or two long [Aside: do you?]. If you don't have that history, build it while your money sits bored in the index funds.
There you go.
Posted by: Tom | October 25, 2005 08:43 PM