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Getting Personal
Getting Personal
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About the author
Christopher Farrell is economics editor of Marketplace Money, a nationally syndicated one-hour weekly personal finance show produced by American Public Media.
Both Tess and Chris mentioned that the IRA contribution limit for last year was/is $4,000. My understanding is that for both tax year 2008 and 2009 the IRA contribution limit is $5,000 - $6,000 if over 50 years of age. Everything I can find on the Internet confirms the higher contribution limits.
I understand and appreciate Chris' stand on diversification. In addition, I believe there should have been some mention of the risk of what the market price of the bond could be when an emergency arrives and it must be sold, whether it is a single bond or shares in a bond fund. Regarding J Hunt's post, I would argue that earning 1.5% in an FDIC-backed savings account would not be losing money but relative to the average inflation rate would be a loss in purchasing power. It appears that with the current inflation figures out, 1.5% will keep up with inflation closely.
I was 5 years from retirement when my broker enticed me into investments into Highland Floating Rate Funds by explaining that it was a low risk investment in a Senior Secured Debt fund for Fortune 500 companies. Now that the market has crashed due to the collapse of the credit market. I can only exit during quarterly option periods and the closing price is their choice during that period. Should I hold on or cash out in 2009.
