Sounds like a good plan. It is so nice to
see somebody visit the thread--if you have
any further thoughts, please share.
My dilemma is an interesting one...what would
you do with a small portfolio that looked like this:
Savings, cash, getting something on the order of 4.5%,
amount equal to about six months of my income--I believe
that is what they say to have.
Mutual fund account, all cash...traded in it for 20% gain
this year, plus whatever it will get being in money market
for most of the year.
Debts: None, other than mortgage loan, PMI is gone now,
good rate at 7.25% (30yr), refinancing probably not too
beneficial unless rates went down around 5.5%.
401k: Cash, about the same balance as IRA, returns about
6.5% per year.
IRA: up 300% YTD...but already down 30% from it's
peak...balance on the order of 50k (down from 70k!).
Holdings: very speculative, mostly biotech, one
microcap software company which, imho, has a very
good chance of popping up 100% on news--but is currently
down 27%. The rest of my account is mostly biotech, and
truthfully, if somebody put another 50k in my hand today
I'd put it in three more biotechs.
So would you be a buyer of stocks outside of the IRA--I've
been hoping for a correction which might take us down into
the 7000's on the dow, but it never comes. And inside of
the ira, I suddenly find myself with some large positions
in things that fast became "long term holds" over the last
month (in fact, I've already realized losses of about 5k,
with the rest still on paper). Exposure to stocks, about 33%,
probably a little low for a gen-xer, but maybe the place
to be in this market!
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