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Author: p8ntbal One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124975  
Subject: ROTA IRA, TO FUND OR NOT TO FUND FOR 2001 Date: 2/18/2002 10:04 PM
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Hi, I opened a ROTH IRA in 1998 with Vanguard. I have contributed the max of $2000 for 98, 99 and 00. I did not contribute in 2001 as I watched my investment of $6,000 over 32 years be reduced to $3,302.46

I invested in Vanguard US Growth thinking I was young and can afford a fund composed of growth stocks. The market took a tumble and I haven't gained one penny since I opened it in 98. The point of the ROTH is to be able to contribute after tax dollars to a government funded tax shelter where it will grow tax free for many years.

Question: Should I have settled for a more conservative gain and invested in an index fund that covers many areas besides stocks?

Question: I have the option to still put in my 2k or 3k for 2001 and also reduce my taxable income saving me another $600 in gains on my return. Should I throw another 3k into the growth fund thinking it's better to fund the losers and hope the market returns a gain over the LONG haul. Am I still in good shape because I never sold my shares and even though I lost money I will gain that much more if it goes up?

Should I switch my ROTH to another fund?

I am 26 and looking for modest growth over the long haul, I have no intention on using the money.

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