Thread: stocks or Mutual Funds for roth ira

Originally Posted by DCguy

I recently started a roth ira and am looking to buy some stock or mutual fund shares. which is better and what stock or mutual fund should I buy? thx.

Hey DCGuy,

Your question sure covers a lot of ground and a person’s specific circumstances, like risk adverse level, time to retirement, other $ needs ( college for kids, house etc), you get the idea. Everyone’s circumstances are different and that will dictate how you invest.

As for my personal circumstances, I’m 3 to 7 years from retirement and my daughter graduates from college next spring, so I’ll see a raise when she moves out. and tend to be more conservative in my stock selections.

Right now, I contribute to my TSP to get all the matching funds, then I Max out 2 ROTH IRA's, me and my wife, and then any extra I may try to put back the TSP, but I’ll have to give that some serious thought, since they have screwed us on the number of IFT’s.

I have 12 stocks in my Roth, mainly solid dividend and decent yield stocks. I also diversify among the stock sectors. I do a little of the Dogs of the Dow method, plus a few others that may catch my fancy. I really don’t have the amount of funds to make it worthwhile to be a trader to buy and sell, in sufficient quantity to make a profit based on percentage rises in stock prices, so I go the stock Divvy and yield route mainly, GE, T, UTX, PG, JNJ, DUK, KMR, BP to name a few and DSX to add some sexiness to the ROTH.

So one size doesn't fit all or maybe one size just fits one when it comes to investments.

Hope this helps,
CB

I'm with T Rowe Price...target retirement fund 2040.

Do any of you look at the morningstar ratings?

Originally Posted by DCguy

I recently started a roth ira and am looking to buy some stock or mutual fund shares. which is better and what stock or mutual fund should I buy? thx.

Depends on your risk. Stock are riskier and have higher potential for reward. Mutual funds are much more diversified and managed.