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URL:  http://boards.fool.com/1-hold-onto-the-fund-indefinitely-continuing-to-21662154.aspx

Subject:  Re: What to do with a losing IRA Date:  11/26/2004  11:08 PM
Author:  Mark0Young Number:  43299 of 80429

1. Hold onto the fund indefinitely, continuing to contribute, thus lowering my average cost.

If your investment plan calls for holding this fund, hold it.

But if today you would purchase another fund, then sell and buy the desired fund inside your Roth IRA. Depending on who your Roth IRA custodian is, this might involve transferring your Roth IRA over to a new custodian (e.g., when I moved my Roth from a load fund family over to Vanguard).

It is a mistake to hold on to an investment until it recovers if one intends on selling it anyway.

2. Cash out and reinvest the money in my brokerage account. I am not sure though if there is a penalty for me cashing out since I have sustained a loss. Anyone know?

If you transfer your Roth IRA over to your brokerage, there is no tax penalty.

If you pull your money out of the Roth IRA (as opposed to transferring the Roth IRA), that money will no longer be available for tax-free growth. And the tax deduction for liquidating