I was looking at my pay stub today and was a little surprised at the gross pay for the year. The size of it implies that I should have a lot more of it, but I also realize that I've been a good little saver/investor this year. Good thing I think I've got the stomach for the ridiculous market slide this week.
The thing that struck me the most though wasn't the amount of money I've made so far this year, but rather the condition that got me there: A full year's worth of work. You see, this will be the first year since 2000 that I've actually been in the same place, all year.
I worked at Penton Media from the summer of 1999 to the summer of 2001. That's where the volatility started...
I was prepared for the market hit. Most of my retirement money goes into CREF stocks where I get the highest earnings.
After making quite a profit on my CREF (stock) account, I made two large transfers (the latest one last month) from my stock earnings to my TIAA Annuity which is currently paying at 5.25%
The annuity doesn't have as large a return as my stock earnings, but it also doesn't take as large a hit when the market goes bad. I'm too close to retirement to make up any long term losses.
I call it my "slot system" as when I used to play slots at casinos I'd slide my profits into a pocket that I never touched and only worked off my original cash. That way I always came home with money.