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Roth IRA for newbie help please?

Im super newbie about the roth ira thing, i was just wondering if i put money to invest in the index fund, if the index fund goes down or about to goes down, am i supposed to sell it or just keep it over years and just ignore it?

I might sound stupid but this thing is just so confusing. Please help and any recommendations for this? Thank you so much

9 Answers

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  • 8 months ago

    In my opinion, just invest it and don't get all hung up over short-term variations. If history is accurate, on the long term you will do well.

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  • Amy
    Lv 7
    8 months ago

    Ignore it.

    The price quoted for a stock is how much people are buying and selling it for in the marketplace right now. You plan to stay invested for several decades, so you don't care what the price is right now.

    An index fund lets you buy whatever everyone else is buying, rather than try to guess how a few specific stocks will perform in the future. If you don't know more than anyone else, keep the index fund.

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  • B
    Lv 7
    8 months ago

    your Roth IRA is for the long term, like until you retire, so any investments might go up or down but over time, probably up. for example, if you bought Apple stock 20 years ago it was about maybe $10, now it is over $225 and maybe split a few times. Your question on index funds follows the same idea, the market goes up and down but over time, probably up. If I were you, I would go into high quality large cap stocks like INTC, AAPL, AVGO (Broadcom the chipmaker for utlra tech equipment), etc.

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  • Anonymous
    8 months ago

    When it goes down is the perfect time to buy more shares.

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  • 8 months ago

    As long as it's a broadly-based index, that's a good move. Leave it there. That's what I did since the mid 1980's, and I'm glad I didn't pull out or chase fast money. Actually, there was only the classic IRA and 401k at the time, but as soon as Roth versions appeared, I switched over.

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  • 8 months ago

    Keep it. You can't tell when it is about to go down. If you sell after it goes down, you lose money. If you keep it long enough, it will go up again (eventually) and you'll make money.

    They didn't have index funds then, but if they did, then the best time to have owned an index fund would have been in the early 1930's, when they would have go up by about 300% in just a few years -- but that was right after when they would have gone down almost 90% in the 1929 crash, so if you had sold when they went down, you would have lost most of your money, and missed out on the opportunity to make money when they went up.

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  • Anonymous
    8 months ago

    You need to read a book. If all you are going to do is expect 1 sentence answers on yahoo you are making a mistake.

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  • Anonymous
    8 months ago

    Yes, you keep it and add money every year. In the long run you will make a lot.

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  • 8 months ago

    ...................

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