Friendly IRA Reminder
The deadline for funding IRAs for 2004 is coming up at the end of the week. If you haven't maxed out your 2004 Roth IRA at $3,000 ($3,500 for anyone over 50 years old) then you have less than 72 hours to do so.
At the same time, think about fully funding your 2005 Roth IRA. The limit increases to $4,000 (or $4,500) this year. I think the market is slowly trending upward, so if you have the cash, consider investing the full amount (lump sum) instead of dollar-cost averaging throughout the year. There's no way to predict, but I believe the market is trending upward for the year, albeit slowly.
My no-fee Roth IRA is held with TIAA-Cref, in one broad, low-cost index fund (TCEIX). I would also suggest Vanguard for IRAs if you have enough to deposit to avoid their fees.
Here's an interesting contrarian point of view, and one with which financial planners will surely disagree: You may be saving too much for retirement. Read
I'm sitting in a suite at the Renaissance Esmerelda in Indian Wells, California, not far from Palm Springs. It's great to get away from reality for a few days, especially when family is covering the bill. I'll be heading back to the Orange County area ... Read
Following up on the topic of 401(k) loans, which was discussed here, there is a new article on CNN Money by Walter Updegrave. Read
Borrowing from your 401(k) is generally a bad idea. There are some positive aspects of doing so, however. It's a nice option to have if you are stuck with no other choices. Read
