Roth IRA!

Hmmm, I've been hiding again, because I've got more money to report that I didn't earn. I was able to contribute an extra $600 to my Smarty Pig IRA savings account this month, thanks to Christmas presents from family members. I am sooo grateful for the generosity of the people in my life, but I worry about windfalls, as previously discussed. The long slog is the only way out, so I don't want to get too used to these random and rare outside interventions.

I also received my federal and state tax refunds this week, which I've thrown into my Smarty Pig IRA account as well. Thus, I have already managed to hit the magic number of $3,000, the minimum needed to make the initial investment in a Vanguard target retirement mutual fund. I plan to open my Roth IRA this week, and I am super excited.

However, an irrational and unproductive desire to "time the market" has started weaseling itself into my brain. The DJIA dropped on Friday, by over 150 points, and my brain already wonders: "Should I buy first thing Monday morning, before price climbs again?" and conversely "Could the downward trend continue?" UGH! This is stupid thinking, and I cannot predict the future. But the thoughts continue.

I understand that trying to time the market should not factor into retirement savings. And I plan to make $100 automatic contributions to my Roth IRA each month, so as to dollar cost average and take timing out of the equation, but this initial $3000 investment is just screaming to be timed. I can't help myself.

Regardless, I'm going to bite the bullet and invest this week. This is my first ever investment, and I am really pleased about it. Some financial experts and personal finance bloggers would disagree with my decision to start investing before getting my emergency fund up to 3-6 months of living expenses, but the earlier we start our retirement accounts, the more benefit we see from compounding interest and a long history of contributions. I am 30.5, and I wish I'd been fiscally aware years ago, but I wasn't. I can't undo the past, but I would like to make up for lost time. Thus, I just don't want to wait any longer to start my Roth IRA. I am quite content with this decision, but as they say, this is why personal finance is personal.