No. of Recommendations: 0
<<From my point of view when all you have is $2000, it is much harder to invest in individual securities plus you have high transaction costs. So, I personally chose to put my Roth IRA money into a mutual fund.>>

I actually read your post to someone else about your personal strategy of using the Roth to invest in aggressive growth mutual funds (BOGLX, i think it was). I think your rationale was that since the growth is tax-free, you might as well invest in something that has potential to be a tax-free blockbuster.

Would you mind expouding on your thinking here? It makes intuitive sense, and the upside is pretty strong, but I'm sort of skittish about the downside. I mean, if whatever aggressive fund I pick ends up in the tank for a while, don't I lose a lot of the benefit of compounding? I'd feel pretty silly if I ended up taking a writeoff in my TAX-FREE roth account (assuming i'm even allowed to do that)...

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.