We are entering the seasonally favorable time of the year for stocks, strong earnings by techs and medicals seem to be pushing the market higher despite continued weakness in the financials.
According to recent surveys consumers perceive interest rates to be too high, in the past consumers had an uncanny ability to predict future interest rates and higher batting average than economists. No surprise here given consumers are in fact the end customer.
Investors often ask me how can a regular guy get a head in the world and retire in comfort. Over time it boils down to several factors. Remember constancy for most of us is significantly more important than brilliance.
1) Hold a steady job.
2) View savings as a mandatory bill you are paying yourself.
3) Invest on a regular basis over a long period of time.
4) Avoid early with drawls from 401k, IRA or any other retirement plans.
5) Start as early in life as possible.
6) Keep it simple don’t diversify your self out of your returns.
While I have your attention for 2007 your ability to contribute to your IRA is $4000 and 2008 limit has been increased to $5000. Distributions from 403b plans used by Municipal workers or 457 plans used by Hospitals, Teachers and Universities can now be rolled over into a traditional IRA or a SEP plans. SEP plans now have a maximum contribution of 25% of compensation up to $40,000.
James J Foytlin
Horwitz and Associates
Toll Free 1(866)492-3959