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Naaree, you ask:

I was planning on putting money(for me and my wife) into the Roth IRA for this year. Got some questions.

1. Is it better to put it into a Foolish Four approach as opposed to an index fund(per 9/23 FF report), say Vanguard, which I understand is the best there is, from Fooldom.

2. In that case should I start it in January, based on 9/22 FF report, since it is IRA money?

What's" better" is in the eyes of the beholder. All that matters is what you think is better from a standpoint of cost, comfort and understanding of the investment involved. If you're just investing $2K in each account, you very well may be far better off using an index fund until the accounts are of sufficient size to keep trading costs well below 2% of your total portfolio.

And there's no need to wait until next January to start using the FF. While the returns may be marginally better in doing so, there's no overwhelming reason to do so. Instead, you may determine the FF as of any date and use that as your trading date. The difference in return won't be great enough IMHO to justify waiting for a new January to roll around. The earlier you start the compounding process in your IRAs, the better.

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