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Our solution to the stock market drop: Throw in another $11,000

September 30th, 2008 at 08:06 am

After the hubby and I were left scratching our heads yesterday after the 777 point drop, we woke up today with a new plan. Well, an old plan really.

Yesterday, we didn't know what to do. We weren't going to be dumb enough to sell stock and seal our losses. But we wondered if we should be tightening our belt more and stocking up on our cash reserves. Or, if we should be buying more stock. We just didn't know.

Hubby and I decided to stick with our original investment plan. Several months ago we had discussed a plan to eventually get out of individual stocks and into all Vanguard mutual funds. We based our portfolio on some of those in the "Lazy Person's Guide to Investing" (A great book, by the way).

"When I woke up today I thought, what better time than now to buy some more Vanguard mutual funds?"

Cruising through our accounts, I realized we had $10,900 in cash in various accounts. Just sitting there. I have no idea why. I guess with the Baby Bean we forgot about it and just left it there to earn like no interest.

So, I bought mutual funds on the cheap today.

Our portfolio is a 10 Vanguard fund model, for maximum diversification. large cap, small cap, international, emerging, and bonds, basically.

Today, we diversified with some VIVAX, VISVX and NAESX. (All funds we had planned to buy but hadn't yet.)

I guess, in times of turmoil, sometimes the best plan is no change of plans at all.

5 Responses to “Our solution to the stock market drop: Throw in another $11,000”

  1. homebody Says:

    Heck I should probably do that too. I have about $5000.00 in my Roth sitting in a MM.

  2. Broken Arrow Says:

    HAHAH, that is amazing! Go you!

    If it makes you feel any better, my stock buy from yesterday have fully recovered AND it's posting a small profit right now! Well, it certainly makes ME feel better!

  3. thriftorama Says:

    I figure why leave all that cash sitting in those accounts. I'm going to have to invest it anyway. I might as well do it when the market is down and at least I can hope to make gains on an upswing.

    I can't take the money out because it's in retirement accounts.

  4. Aleta Says:

    I so agree with you. As they say, buy low and sell high. I think like you. These days are always a sale day for me.

  5. thriftorama Says:

    Of course, I still have my fingers crossed that nothing catastrophic happens! I really don't want to be in my mid 30s going through a depression.

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