HOLY mackerel! The January statement for the IRAs came from the financial management firm. The large IRA earned as much in January as I make all year when I’m teaching the maximum load the District permits adjuncts to take on. Raining money, indeed. Wow…
In the past, when times were good (remember those times?), it would occasionally earn ten grand in a month. But this is ridiculous.
So why am I even being bothered to teach, or to do anything else, for that matter? As we’ve seen, it’s a question I’ve taken to asking myself more and more often.
Well, for one thing, under decent conditions I like teaching. I enjoy young people, and even though I don’t delude myself that I “teach” them anything (no one teaches anyone anything: you can take the horse to water…etc. The best you can do is serve as Virgil to the student’s Dante), I find it entertaining to watch them develop when challenged by whatever wacky stuff I throw at them.
And of course, the problem with a sixteen-thousand-dollar windfall is that it comes along once in a blue moon. Stock market investments can’t be relied on to generate any returns on a regular basis, and as a matter of fact for most months since the Crash of the Bush Economy (heeeee! :-D), returns have been negative. You can’t be pulling down what it takes to live on while your nest egg is steadily shrinking.
Hm. Speaking of money management, there’s still a chunk of money sitting in an old whole life policy. I’ve delayed rolling it over into a brokerage account because I haven’t wanted to trigger the tax on it. Plus it does provide my son with almost 40 grand worth of insurance, which would make him right-side up in the upside-down mortgage I got him into.
Financial Advisor and I have been engaged in a long-running disagreement over this little pot of gold. He wants me to draw it down to live on. I want to roll it into a brokerage account and put it to work, even though I’ll have to pay tax on it. Matter of fact, once the tax is paid, it could be used to fund the Roth IRA, which I’m not going to be able to contribute to for many more years.
Or, of course, I could use some of it to buy a much-needed new car.
Either of those, IMHO, would be better than letting it sit in the insurance policy, where it earns about as much as a bank savings account does. The thing returned $1,128 in 2011, plus an $888 cash dividend. LOL! I’ll never get out of the 99 percent at that rate!