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<<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)...

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