The benefit of remaining calm

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Earlier this week I mentioned the stock market being up 2000 points and how we were committed to our current investment plan. Yesterday, we received our May statement for our Roth IRA and received a very nice surprise.

I have posted before how we have consistently contributed to our Roth IRAs and my 401k even while the market was tanking. While others were getting out in an attempt to protect themselves, we decided to ‘ride it out’ and keep plugging away. We have been contributing faithfully to our retirement funds and our kids college funds. No, I don’t like losing money, but while the market losses continued to add up, we were buying more and more shares of our mutual funds, with the same amount of money, because of the falling prices.

Now that the market has turned around, all of those ‘cheap’ shares are beginning to increase in value. How much? Well, for the month of May, our Roth IRA gained over 10%. Not bad for a single month.