Tuesday, December 9, 2008

Livin the high life earning 5%

So, a few years ago I had a job for a short amount of time before I was laid off. I only put aside what they matched in my 401K (typical for a 20-something, right?) so I had a small amount when I left, so small that I couldn’t leave it there for them to manage. In order to avoid paying the early withdrawl fee, I rolled it into an IRA CD through a credit union. I know, a CD? Not a very good ROI-such a small interest rate and people were rolling in the money in their 401Ks. Well, my options were limited with such a small amount, so I figured that would be my “safe investment” and I checked out a few IRA CD options and got it at decent CD interest rate in 2007. People laughed last year when I told them my 401K was in a CD. Well, people under 65 laughed. Ok, even retired people laughed.

Well, its sad to say that my CD well outperformed Mr. Lush’s 401K. Like many of us, the 401K took a hit with the economy-I think his lost about 35%, give or take. But not me. My “savvy investment skills” earned me a whopping 5%.

I’ll be available for financial advising appointments next year.


1 comment:

LucyinStLou said...

Aw, rub it in. I'm afraid to open my statement. Seriously. Maybe in 10 years I'll revisit and feel good about my investments.