About Me

Petunia

40-something wife of Mr H and mom of Daisy.

Goal 2: Budget for Checkbook One
- Write a budget for Checkbook One each month, one week prior to the start of the month.
- Update weekly - amount spent and amount remaining for budget categories.
- Share weekly budget updates with Mr H and get his feedback.
- Evaluate each month's budget at the end of that month.

Status: Achieved for Jan, Feb, Mar, Apr
Somewhat achieved: May, June
Not achieved: July, August

Goal 3: Decrease food costs
- Keep food, cleaning and personal care budget to $650/month
- Look for ways to decrease that $650 figure

Status: Achieved for Jan, Feb, Mar, Apr
Somewhat achieved for May, Jun

Goal 6: Save 2% of monthly income towards retirement for April, May and June. Increase to 3% in July.

Status: achieved Apr, May, Jun
2% achieved for Jul, Aug, Sep
Re-evaluating the % increase

Goal 7: Limit coffee stops (ie, Starbucks) to two per week

Status: Started in September

Future goal: Save 10-15 % of our income for retirement.

Future goal: Develop a source of "egg money".

Future goal: In five years move closer to our church.

$20 Challenge Total for 2008: $152.50
Tutoring income for 2008: $570

NSD's = No Starbucks Days

My Pages

Mutual Fund Jitters

April 21st, 2008 at 08:53 pm

During our conversation yesterday, DH and I discussed the mutual fund. He's kind of nervous about it, because we keep buying shares but its value doesn't seem to go up. (It's value has gone up in other years.) I haven't been following it that closely, but it is a Vanguard retirement fund. Isn't the market kind of in a slump? I know I opened up my 401-K statement recently - the stock funds were down and the bond funds were up.

Anyone have any suggestions for what to say to calm DH down about this topic? The next "good" time I'm going to discuss increasing the amount we are putting into the mutual fund.

Posted in Retirement | 8 Comments »

8 Responses to “Mutual Fund Jitters”

Long Term Says:
April 21st, 2008 at 09:11 pm

Please take care. You and your husband are actually purchasing the shares at a "sale" price right now. That same dollar amount you are investing is buying you more shares. When the market turns around, those "more shares" will yield you a higher gain. It is not a wise strategy to only invest when the market is doing well because you are essentially buying at the top. Then when the market turns down and you sell because you're worried, you are selling low. Buying high and selling low is the opposite of the goal of investing. If you're investing for the long term, don't allow market volatility to change your strategy unless you feel like the funds you are investing in or the economy will not recover.
Petunia Says:
April 21st, 2008 at 09:28 pm

Thanks Long Term. We make the same dollar amount purchase of our mutual fund every month, so it's this monthly amount that I want to increase. Basically we're taking advantage of dollar cost averaging, I guess. We haven't sold any of it. Perhaps I will try to emphasize "sale price" on the mutual fund now, and that when the market turns around they will be more valuable.
baselle Says:
April 21st, 2008 at 10:52 pm

Stocks and mutual funds are the only two things that people hate to see go on sale. Everything else - when it goes on sale, everyone's happy.

Equities are very volatile right now. I've lost a bit of money in my Vanguard funds this last quarter. Also remember that they are paper losses - you still own the same number of shares, comprised of the same companies which will be doing the same business in our capitalist society. Unless you are going to sell right now, it shouldn't make a difference...but it is unnerving.
merch Says:
April 22nd, 2008 at 04:42 am

I actually think the market has turned and is going back up.

Sounds like you and your husband are having better talks over the last few days. How do you eat an elephant? One bite at a time.
Petunia Says:
April 22nd, 2008 at 05:19 am

Baselle - yes, I think "unnerved" covers it for him.

Merch - I appreciate your continued optimism. I haven't thought about the elephant saying in a long time - it gave me smile.
Broken Arrow Says:
April 22nd, 2008 at 08:59 am

I don't know who Long Term is, but he said exactly what I was thinking. In fact, I'm practically GIDDY at all the low prices. Seriously, I could not be more itching to buy right now.

Baselle touched the other point, which is that, until you actually SELL, the losses-- as well as the gains!-- are all on paper only.
JanH Says:
April 22nd, 2008 at 05:36 pm

I hate getting those statements with losses. Hubby explained it to me recently. He said we are buying at lower prices and more shares with the same amount of money we put in each month. We're to hang in there for the long haul.
terri77 Says:
April 22nd, 2008 at 06:19 pm

The market is actually looking better right now, but I always consider downturns in the market like a big sale.

Petunia in an Onion Patch

When life brings you onions. . . Make French onion soup

Mutual Fund Jitters

8 Responses to “Mutual Fund Jitters”

Leave a Reply