Rolling your 401k: Contributory IRA vs. Rollover IRA

This type of IRA allows you the most flexibility. You may roll the proceeds back into a 401k plan if you want to utilize a loan provision. However, for tax reasons you should not make annual contributions to this IRA. If making annual contributions becomes important to you, simply open another contributory IRA.

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Good Stock Market Tip; Good Return!

So, to beat the ‘risk of no guarantees', and to reap the benefits of a better return, I diversify into other companies with the same historical performance. Through a systematic approach of dollar-cost averaging into my stock positions every quarter, along with my quarterly dividend reinvestment, I increase the amount of dividends paid to me each quarter, from every company that I own. My measurement for success in the stock market is not measured by the amount my portfolio is worth. It is measured by the amount of ever-increasing cash dividends received from every stock that I own. As a matter of fact, when my portfolio dips in net-worth, my dividend income accelerates. The reason for this is simple. The lower my port- folio's net-worth, the higher the dividend yields of the stocks in my portfolio.

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An Economical Retirement Investment Plan

But the economy of making each investment in the stock market does come with a price. It will require self-denial (the money invested is not spent for goods or services). Economy and self-denial, I'm afraid go hand-in-hand. To truly benefit from a stock market investment, a savings plan should be adopted and a systematic approach of dollar-cost-averaging (buying the same stock at different prices) should take place; and when the purchase should take place, economically clearly defined.

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