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Well, my problem is plain ignorance. To compensate for it, I see things somewhat the way a rabbit does: everything looks like a predator. Skeptical to a fault, you might say.

So far, it looks as if I have done things properly considering my situation. Since 1999, I saved approximately 40% of my take home pay. That's not counting 401K, which got about 15% over that same time period. At the same time, I reduced all my debts to 0. When I talk to my friends and family, all the say is how the hell do you do it? My grandma told me to pay yourself first. Write yourself a check before you pay anyone else. And so, every payday, sort of as a ritual, I write myself a check for the predetermined amount and deposit it in my money market account. Simple.

I am closing on my first home this month, but I don't believe I have gotten sucked into the real estate bubble. It's a home way up in the northen tip of the state, and it really does appear to be a good value, or else I wouldn't have bought it. It's a 20 year mortgage with 20% down. 6% interest. So it's not a case of easy credit either. The mortgage payment will represent approx. 25% of my take home pay. I think I did ok.

My only remaining concern is liquidity. I am spending most of it to get this house. But I have a savings plan for the next two quarters which should get me back up to a good level of cash reserve(about 4 months income.) I am planning on making some life changes too. I am going to leave my job next year, around February, and start my own small business. It's going to be a microbusiness. Start up for less than 5K, with me as the sole employee. My company is downsizing and downsizing some more, and my department is not long for day, I don't believe. I prefer to be proactive about it, and anyway, I want to be my own boss, and so I will take my chances.

So I really haven't invested in the market at all, besides 401K, and there the company match was as much a rationale as anything else. I invested just enough to get the full benefit of that. I don't know why I am describing my situation online. I guess I am hoping for either a) validation or b) some good pointers. In the meantime, I'll keep on reading these reports.

"Well, my problem is plain ignorance."

I don't think so. After reading your investment situation it looks like you are right where I would love to be if I were your age. In fact, it took me 50 years to get to where you are in about half that time (I assume you are under 30)! I was in very poor fiscal shape when I was 30...

As Stonewalls says, Good Luck to you!

..."I don't know why I am describing my situation online. I guess I am hoping for either a)validation or b) some good pointers"

.....I think you're smart to avail yourself of investing discussions on the net....I wish we'd of had it when I was 34...all we had back then was Louis Rukeyser on Friday nights....let's face it, investing can be a lonely business...the anonymity of the net has helped relieve some of that....

Good luck to everybody!

Stonewalls