An Update On My Plan For 2008

We're nearing the end of January and my wealth building plan is moving right along. As of this morning, my stock portfolio has regained a lot of the loss suffered during the past month, thanks to the interest rate cut by the Fed and the Economic Stimulus program. More importantly though, my cash positions have increased dramatically in both my money market account and in my regular savings account. I should have a nice tidy cash reserve built up by the end of March. I have decided to deploy my excess cash in 6 month certificates of deposit. The plan is to purchase a 6 month CD each month for the last 6 months of this year, then I will have one coming due each month thereafter. Should I need the money for any reason, it will be available to me, otherwise I will roll the interest and principal over for another 6 months. As for the stock portion of my investment portfolio, I am investing a set dollar amount each month (dollar cost averaging) to build up my stock holdings, thereby increasing dividend income on a regular basis.

I have automated all of my plan deposits through payroll deductions and recurring electronic transfers through my bank and my brokerage account, so my plan is very low maintenance. Right now I'm pretty much sitting back and watching the cash roll in. I think the adjustments I've made to my investment plan this year have produced some of the best results I've experienced so far. I'll post an update each month and keep the readers posted on how things are going.