Vickifool wrote:You can invest your Roth IRA in cash or a CD or a money market fund if you want to. And move into an index fund later.However, you might not be able to do that at Vanguard. You can call them up and ask them--their telephone service is pretty good. (Not perfect. Story omitted.)I have a Roth at Vanguard. They do have various money market funds, TIPS, bonds, etc. And they sell CDs too. Although I haven't tried doing that within the Roth one probably could. Like you said, telephone service can talk people through. One big factor that nobody has mentioned -- if the OP doesn't put the money in a Roth by filing time next year s/he's lost this year and can't get it back. That's a good argument for putting the money in the Roth, even if it's in a conservative investment.OTOH, when the market is down that just means it is on sale. So now is a good time to buy. It might go down farther, but it might not. Joexwill times the market. I doubt that anybody can do that successfully.If I was just starting out now, I'd buy the index fund and be done with it.I'm in my 50s and wishing I had $3000 to put in right now. I've been doing regular monthly $500. I've lost a ton like everybody else, but even at this age my time horizon is long enough to make it worthwhile to take some risk. But as Suze Orman and some other advisers say -- you've got to do what's going to let you sleep at night. If trusting the market will go back up isn't for the OP, a Roth with conservative investments is a decent compromise. At least that 3 per cent a year won't be taxed.Guby
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