Monthly Update: February 2008(-$53,821.09, +$86.52)
A bit late with the results…… mostly because I was afraid to look but we eeked out a slight gain for the month and that is all I could ask.
The realities; read “challenges” of our family becoming a single income household are becoming more evident at this time.
Here is the Damage for February:
Here is our guidance for February:
1. We continue to place the majority of our savings into short term, cash-equivalent savings. I am not a sophisticated investor, but right now I don’t see many bargains out there and most of the major expenses facing a young family (1st home, moving, young children) are looming ominously on the horizon for us.
2. I made a lump sum contribution of $2000 to my IRA for the 2007 tax year. I had already contributed $2000 throughout the year in monthly contributions and my wife an I both decided that this was a good use of a couple of thousand dollars to help decrease our taxes again this year.
3. I also recharacterized my Roth IRA contributions for 2007 to a Traditional IRA contribution. After much reading and deliberation I decided that less taxes this year was better than the promise for less taxes in the future. It is too easy to see congress attaching some form of income/net worth stipulations to the tax-free benefits of the Roth IRA.
4. We also had another 0% balance transfer offer fall into our laps with no fees attached. With the addition of this $5000 balance transfer, we now have over $67,000 in 0% APR balance transfers from various credit card companies. Unfortunately, the Fed is making this a less lucrative proposition each month as they cut the interest rates.
While cutting your family income in half right when the economy is going into a recession isn’t at the top of everyone’s to do list it appears as if we will be OK.
The day is fast approaching when I will finish this stage of residency and proceed to move to the next step of my training. This will bring with it a fresh set of choices once again.
