Roth IRA Goal Update March 2014

Dollar Flipper Blog Update, Profits

Over the $1,000 hump for my Roth IRA goal!

13Mar2014 Roth IRA Update

That line is slowly movin’ on up. Watch out Jeffersons!

Roth IRA Goal

$1,101.99 invested in the 2014 Roth IRA so far! Considering that March is ~ half over, I’m on track for $5,289.55. Obviously, that’s a little short, but I’m sure I’ll make up the ground!

For those wondering what my allocations are, I generally follow the guidance of JLCollinsNH, Mr. Money Mustache, Johnny Moneyseed, and the most down-to-earth/realistic of the bunch, J. Money.

These bloggers all fall in line with what I learned reading A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel. The basic (VERY BASIC, please check out the blogs or book above for more in depth info on the ins/outs!) premise is that you cannot beat the stock market in the long run. Even if you know everything possible about one company, and know it’s exact value, it can either go up or down for some reason (maybe a sale, or some tank explodes).

The point is that you can never know how a company will do, so it’s much safer to invest in index funds, something like VTSAX from Vanguard, which allow you to have the whole market in your portfolio for one of the smallest fees (expense ratio). Instead of just investing in one risky stock, you’ve got a hand in ALL of them (or there abouts).

This strategy might not make sense for someone who’s older and closer to retirement, but for my young family, it’s a good one. In the long run, the stock market goes up, and we don’t plan on touching our Roth IRAs for a long time (even that tempting principle).

Ignoring all of the fancy details on where/how you’re investing, the best place to start is actually tracking your spending  and beginning to save any money. A dollar sitting in your checking account is still better than $1 spent on a bottle of soda. I seriously don’t even know if you can even get a soda for that much anymore. I don’t know the last time I bought one!

My wife and I started tracking our spending last March, and this coincides with the start of my online re-selling business.

LOL “Overtime”

Like most salaried employees, I don’t have an option to work overtime, so I needed to find some sort of side hustle. Buffering my full-time job with eBay and Amazon sales is my method.

2013 was the first year that we were able to fully fund our Roth IRAs, and we’d love to keep that rolling in 2014.

If you’re as interested in personal finance as I am, check out my post detailing my 2014 goal and plan of attack to completely fund my 2014 Roth IRA ($5,500) using only online re-selling!

-Dollar Flipper