Thread: Roth IRA (Confused Investor)

One comment about the investing for fun, getting bored so you change your portfolio concept: The best advise i've heard on this is, we all like to have fun. Dont make your fun with your retirement package though, cause the consequences can just be too severe. If you just cant resist, i like pete's advise; play with 5-15% of your portfolio, but not the whole 9 yards.

azanon wrote:

To me, the most attractive thing about diversified, buy-and-hold stock investor is that you're guaranteed not to be the big loser; far far from it. Average really isnt that evil. "On average", you're certainly be no worse off than anyone else. Heck, if one's just using stocks to build their retirement, they're way ahead of the masses. As Tom as alluded to on our main boards, a shockingly small number of people even utilize stocks.

In short, and as a collective whole, (if i were guess), if one invest 10% of what they make, and invests the majority/all of it in stocks, they'll have a retirement package someday that will easily be better than 90% of their peers for the simple reason thatmost dont save 10% and most dont use stocks fot the little they do invest.

I wholeheartedly agree.

Most do not fully utilise their 401(k)s, even with funds matching (What!? Turn down free money!?) and most do not max out IRA contributions. That is nuts. This is why we still have Socialist Security Tax.

azanon wrote:

One comment about the investing for fun, getting bored so you change your portfolio concept: The best advise i've heard on this is, we all like to have fun. Dont make your fun with your retirement package though, cause the consequences can just be too severe. If you just cant resist, i like pete's advise; play with 5-15% of your portfolio, but not the whole 9 yards.

I agree here, too. It goes back to risk mitigation. One should only play with what one is comfortable with losing (Stock Speculation 101: Only risk money that you can afford or are willing to lose). The degree of your own competence is also relevant to how much you should risk. Personally, my retirement accounts are in aggressive, above-average funds, somewhat diversified between fund families and market sectors and my taxable brokerage account is 40% stock funds and 60% stocks. Depending on my mood, my stocks are split between long-term holders and fun-play-try-my-hand-in-stock-timing.

My plan right now is to dump as much as I can into my taxable account before the TSP max is lifted in 2006. In 2006,what I normally contribute to my taxable account will go into the TSP instead and my brokerage account working capital should be large enough to grow it substantially without further contributions. The tax savings from TSP contributions should offset my tax liabilities from my brokerage investment earnings to some extent. Basically, I am "priming the pump".

So, what would be a great fund for the Roth IRA???

I would like to know that answer myself. It seems everytime I've asked on other forums, I get the run around because it ends up turning into a debate over this fund and that fund. I realize we all have our preferences, BUT there has to be at least ONE GOOD FUND out there.

What is it?

My Wife and I each have$5,500 in a Roth IRA Share account earning 2% quarterly.

I know I can do better, I just need to be led.

Thank you & God Bless:^

Welcome, Rod!

Yes, Az keeps picking fights with me and clouding the topic. (hehehe, that is so untrue)

Barring few historical exceptions, like Magellan in Lynch's day, I do not believe in a holy grail of funds. Even if there were, my personal style at the moment, would likely have me pass on such a fund.

The question for you, Rod, is what is your "style"? What are you looking for in a fund? Do you want to buy with confidence and hold it indefinitely or stomach more risk for a greater return, managing it every-so-often?

Approximately 60% of all funds underperform the S&P500 index. There is your baseline, an index fund. To begin your search, try to find funds you like that have consistently outperformed the index; it is harder than you think.

Thanx Rolo

To be quite honest, I'm not very familiar with investing in funds. But common sense tells me that I need to move my Roth out of the share account, and into something more aggressive. I guess my risk factor would be above average- Perhaps a Beta 2.

I recall someone telling me to invest in Scudder funds. I realize there are thousands of funds out there, but I'm really confused as to where to begin since I don't know too much about reading the market. At least not yet.

If I was your brother, what would you recommend? I do realize all recommendations are at my own risk. So please don't be afraid to recommend a good performing long term fund for my Roth. I'll take everything into consideration.

God Bless:^

For what it's worth, I've heard real good things about the Hussman Strategic Growth Fund. http://www.hussmanfunds.com. The folks at decisionpoint.com have some great things to say about the manager of the fund.

Disclosure: I'm not in it myself currently.

Thank you for the info!

BTW, I want to also thank you for investing your talent & time into this website. It is VERY helpful for folks like me who want to familiarize ourselves withour TSP options and gain a better understanding of general investing.

Please know that you are truly appreciated!:^

God Bless

Please look at some of these facts & figures of the Hussman Strategic Growth Fundand let me know what you think.

http://www.hussmanfunds.com/theFunds.html

Thanx!

Please know that you are truly appreciated!

Thanks Rod!!

Well, Morningstar does give this particularHussman Fund 5 stars.:^

hahahannnnggghghhhhhaaaaaah!

stars

heh



THAT looks like the fund to have during bear markets, eh? (Or for people who don't like to lose...ever.) It should get a more deserving name than "Strategic Growth".

The only thing I do not like about it is the 1.5% redemption fee. Of course, with a beta of 0.13 and given its track record, it would be hard to part with this fund...except during bull markets, such as we had in 2003; but I do not think that is going to happen again for a long while.

I could have used this puppy in January. It is going in my contrarian category buy list.