Stay the Course With Retirement Contributions
The July 2008 issue of Kiplinger’s
Personal Finance listed the 20 largest stock mutual funds. American Funds
claimed 10 of the 20 funds. The average return of these 10 American Funds
through May 12, 2008 was 15% per year for the last 5 years.
The Standard & Poor 500, a benchmark many use to measure
performance, had a return of 10% per year for the 5 years through May 12, 2008.
Funds that average 5% per year more than the S&P 500 benchmark are worth
considering.
Retirement investing is a long-term plan that works well
over a 15-40 year period. When the market is down, you are able to buy more
shares at a lower cost. This is a time tested investment strategy known as
“dollar cost averaging.” The idea is to save a set amount of $300 to $1,000 per
month and buy the number of shares that amount will purchase. Lower prices mean
more shares. This is good news when the price per share rebounds. Will the
market rebound? Unless it’s the beginning of the end, it surely will. If it’s
the beginning of the end, we can “lift up our heads for our redemption draweth
nigh. Either way, we win.
Stay the course. Save for your retirement. The Joseph
Principle admonishes us to save during the fat years for the lean years.
Jan Couch
Stewardship Ministries Director