| No Confidence in Market (Recession in the horizon) |
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Lorddimples
New Member
Cash: $ 0.95
Posts: 4
Joined: 25 Mar 2006
Location: NYC
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| No Confidence in Market (Recession in the horizon) |
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Because of a pending recession & my lack of investing awareness I'd like to take my time.
Unfortunately this year I am pressed to open an IRA for tax purposes before april 15th. A 1 year CD in my IRA account seems like the best option.
In the future I'd like to invest in an Index Fund & eventually in an alternative energy stock to my liking.
Maybe I'm 2nd guessing my decision as well as wanting to feel out how this discussion forum feels about my short term investing plan. I realize this is a personal decision but I'd like to hear your opinions if you care to share. 
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Sat Mar 25, 2006 3:22 am |
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TeenInvestor
Full Member
Cash: $ 16.40
Posts: 77
Joined: 06 Jul 2005
Location: Minnesota
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I dont know enough to help you ou ton this, but I would advise you to talk to a expert.
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Sat Mar 25, 2006 3:38 am |
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Lorddimples
New Member
Cash: $ 0.95
Posts: 4
Joined: 25 Mar 2006
Location: NYC
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| Wrong choice of words on my part |
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What my plan was to wait until a recession hits. Before that I'll have my IRA contribution in a CD. When I'm sufficiently comfortable & when the recession hits I'll rollover my IRA - CD into an IRA - index fund.
Because I think stock prices will go down I want to wait until then. It is at that 'buy low' point that I will invest not only my IRA money but my some of my savings. Even though I intend to invest for the long term this seems like a lucrative plan.
Starting with a CD is my short term plan. The IRA is definitely the long term vehicle that will hold an index fund when the price is right.
Sorry for the confusion. I hope I was clear this time. Please let me know as I'd hate to have misconceptions about what I'm doing or what I'm saying.
Thanks
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Sat Mar 25, 2006 4:20 am |
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eswaff
New Member
Cash: $ 1.35
Posts: 6
Joined: 03 Mar 2006
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Lord-
Dont hold your breath for a recession anytime soon. In case you haven't heard the news:
1. Esentially full employment right now. In my state they are offering bonuses for what i would consider normally easily employable positions because everyone is already working.
2. Stock market is at a 6 year high.
3. Unprecedented growth in most sectors. (housing starting to cool but look at what point it is cooling from)
Only thing that could make times better is if they make the tax cuts permenant. ( and of course abolish the IRS, but I wont hold my breath for that)
Better think about an investment strategy before a recession because when a recession does come around it might be too late.. Good Luck.
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Sat Mar 25, 2006 5:12 am |
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JBendar
Senior Member
Cash: $ 49.60
Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
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| Re: No Confidence in Market (Recession in the horizon) |
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quote:
Originally posted by Lorddimples
Because of a pending recession & my lack of investing awareness I'd like to take my time.
Unfortunately this year I am pressed to open an IRA for tax purposes before april 15th. A 1 year CD in my IRA account seems like the best option.
In the future I'd like to invest in an Index Fund & eventually in an alternative energy stock to my liking.
Maybe I'm 2nd guessing my decision as well as wanting to feel out how this discussion forum feels about my short term investing plan. I realize this is a personal decision but I'd like to hear your opinions if you care to share.
Contributing your IRA money in a CD is fine if you are contributing to a Roth IRA (minimum holding period is 5 years). An alternative would be to put your money in a high yielding savings account. This does not lock up your money and the interest rate varies frequently. An example would be an ING Direct account, but there are others. The whole purpose of an IRA though is having money for retirement. Unless you are close to retirement age now, it doesn't make sense to contribute to something that has a low return (unless you are concerned about risk). There is a magazine called Kiplinger. They have a tool on their web site that allows you to look for investments meeting certain values. If you need assistance with how to use this, let me know, and I'll help you out. Yahoo Finance also has a stock screener that is free. Long term investments should get the highest return possible (with the risk factor taken into consideration). If you are looking to invest in alternative energy, do a search for that topic. Just be aware that stock picking sites are looking to make a profit at your expense. Hope this helps you somewhat. Good luck with your goals!
JBendar 
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Sat Mar 25, 2006 4:25 pm |
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