Alright, I bought XXX dollars in stocks about a month ago, when the DOW was setting records. Right now, my portfolio has lost about 7% of its worth. 11% when you factor in maintenance fee that i paid upfront.
Is that bad?
2007-11-24 05:34:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
er uh...............Im currently 20 and the money is in a roth ira. Money that i dont intend on touching until 40 some years in the future.
I still look at it though.
Should i just keep making contributions and put it to the back of my mind?
2007-11-24 05:55:38 · update #1
I am not sure who the second person is that answered this question, but the first line of his answer is WRONG. It is scary that there are people are that answering questions that have no clue what they're talking about. To correct his wrong statement: You are correct to be invested in a Roth IRA at your age. Roth's are actually intended for people who are below certain income levels, NOT for "rich" people as that person wrote. If a person is single, they have to make below $96,000 per year, in order to contribute to a Roth. If they're married filing jointly, then they have to make under $156,000 per year. A Roth grows tax free, where as a Traditional IRA grows tax deferred. Which means you will never pay taxes on the earnings in a Roth, as long as you keep the earnings in there until you're 59 1/2. On a Traditional IRA you will be paying taxes on the earnings when you start taking withdraws. You have clearly chosen the the best type of IRA for you, so don't let anyone tell you otherwise.
As far as your current returns: If you are in good quality investments, then there is no reason to panic and sell it. Just ride the waves, especially since this is your long term money. Its not good to panic and sell a good investment just because of a a down market. The most successful investors, are the ones who stay the course. Hope that helps!
2007-11-24 07:07:02 · answer #1 · answered by Anonymous · 2⤊ 0⤋
If this is an IRA, which is your long term money, and if you have 40 years to invest, then why are you worried about it? You need to have a long term perspective on your investments, especially your retirement money. To be a good investor, you are going to need to have tolerance for the market highs and lows. You also need to realize that the worst time to sell a good investment is when its down.
Hopefully you are in a good investment. Without knowing what you're in, it would be hard to say. Did you buy individual stocks in your IRA? Or did you buy mutual funds? In an IRA you're better off being in a professionally managed mutual funds, rather then individual stocks. Especially if you have very low tolerance for market loss. You can reinvest the capitol gains and dividends to purchase more shares of the mutual fund. If you are in a good investment, then don't worry about the money you lost. If anything, right now is a good time to put more money into the market, if you still have additional money you can contribute to your IRA.
2007-11-24 06:54:08 · answer #2 · answered by lmcginnis14 2 · 0⤊ 0⤋
In your position, why not get traditional IRA instead of Roth? Roths are for older investors or very wealthy ones...but at 20 you probably aren't in a hurry to stuff money into an IRA.
By the time you start taking money out of your IRA, stock performance in november of 2007 will not matter at all. Remember, stocks tend to be a very safe long term investment (assuming you're dealing with large/mega caps). It isn't necessary to worry about your IRA right now, because unless something very dramatic happens to a company whose stock you own, there's no need to worry.
2007-11-24 06:43:15 · answer #3 · answered by bent_reticence 2 · 0⤊ 1⤋
No! Don't base reimbursement on inventory efficiency immediately. There are many approaches to manage profits and different released understanding that buyers use to compare the efficiency of a organization. This signifies that the CEO has incentives to manage the organization's books to make it seem well. Therefore, inventory efficiency isn't any truly indicator of the organization's efficiency over brief intervals of time. On the opposite hand, in the event you deliver the CEO inventory OPTIONS that may be exercised in a few years, the CEO has incentives to make longer-time period selections which are extra within the pursuits of the company.
2016-09-05 13:07:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Are you looking at short term gains? Maybe you could review the stock performance after a longer period.
2007-11-24 05:46:41 · answer #5 · answered by SM 2 · 0⤊ 0⤋
Ask your broker or the mutual fund manager how he hedges against adverse conditions and for how long. Then make an intelligent decision.
2007-11-24 13:50:15 · answer #6 · answered by !!! 7 · 0⤊ 0⤋