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Author: ICHIMNU Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: edgy about 1st yr. Roth Date: 2/21/2000 8:33 PM
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I'm new to investing yet enjoying it. I'm 29, my wife is 37. I started Roth's for the both of us this year, declared on 99 taxes. I am using a discount broker and have invested in the RP4 Foolish Four. Now I'm 4 weeks into it, have lost 11%, though am beating the Dow (am I?).

I am starting to second-guess myself. Should I be using the advantageous Roth IRA with stocks? Is there a better strategy for Roth's (e.g. funds)? I won't act hastily- I know the strategy is for a minimum 366 days; & the commissions to alter the Roth's could add up to 5% of my investments. I'm just curious if there is another recommendation for me to pursue besides the "easy" Foolish Four?

P.S. To any & all respondents, thanks for taking the time and FOOL ON!
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19379 of 75335
Subject: Re: edgy about 1st yr. Roth Date: 2/21/2000 8:47 PM
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I'm new to investing yet enjoying it. I'm 29, my wife is 37. I started Roth's for the both of us this year, declared on 99
taxes. I am using a discount broker and have invested in the RP4 Foolish Four. Now I'm 4 weeks into it, have lost
11%, though am beating the Dow (am I?).

I am starting to second-guess myself. Should I be using the advantageous Roth IRA with stocks? Is there a better
strategy for Roth's (e.g. funds)? I won't act hastily- I know the strategy is for a minimum 366 days; & the commissions
to alter the Roth's could add up to 5% of my investments. I'm just curious if there is another recommendation for me to
pursue besides the "easy" Foolish Four?


You do not bail when the market goes down. Since this is long term forget it until next year. Also remember every year is not a winner (but most are so keep the faith)

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Author: UUinMN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 19419 of 75335
Subject: Re: edgy about 1st yr. Roth Date: 2/23/2000 11:54 AM
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...the commissions to alter the Roth's could add up to 5% of my investments.

Do you mean that if you sold these four stocks, and bought four others, or a mutual fund, your portfolio would shrink by 5%? If so, this is a bad sign. Even if you do this only once a year, that's a big drag on your return. You should try to keep your commissions down to 1% per year, or possibly 2%. You can do this by

1) Using a lower-cost broker
2) Avoiding individual stocks until you can rotate stocks for 1% of the value.
3) Using Long-Term Buy & Hold investing style. Paying several percent commission could be OK, if you pick well and hold for several years.

Fool on!

Michael

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