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of course before you do that , the question is do you have the stomach for volatility ? just because you may be young does not mean a target date fund based on your age is a good choice for you .
i was on the 401k committee at work , and we saw loads of youngin's run for the hills in 2008 because they were told they should have high very equity positions .
target funds are one size fits all as well as have total dis-regard for market conditions and what is happening in the world .
they do not work well either when dollar cost averaged in to , which is just the way they are used .
needless to say i much rather go a non target day route . target date funds were a wall street creation so they had a product to offer everyone without repercussions since it was always "age appropriate"
Last edited by mathjak107; 12-18-2016 at 04:13 PM..
If I just put money into my Roth IRA without picking investments will it earn any interest? I don't know which stocks to choose yet. I keep seeing you can take money out of Roth IRA some times I see with penalty some times I see without. Not sure. I want to invest I am willing to take 50-60% risk
You know, you really should not be putting money into something you don't understand. If you can't explain it to a seventh grader, don't do it; and certainly don't put money into something just because someone told you to. This is your retirement nest egg; at some point it will be your largest asset. It's worth spending some time on it so turn off the TV and educate yourself so you can make the right decisions for you.
If I just put money into my Roth IRA without picking investments will it earn any interest? I don't know which stocks to choose yet. I keep seeing you can take money out of Roth IRA some times I see with penalty some times I see without. Not sure. I want to invest I am willing to take 50-60% risk
You say 50-60% risk....what does that mean to you? Do you mean you're willing to have it go down by as much as 60% in a year?
The money has to go into some sort of an "investment" account when you send it to the RIOTH trustee. You probably went into a money market account and will get very little interest so you do not want to keep it their for long.
If you do not know what to do then start with a target date fund. That is why they were started. For people not sure what to do.
I think the bond part of a target date fund is a poor investment now. So I would pick a fund with a data as far into the future as I could find. Yes pass your retirement date. You can move to another fund when ever you want.
I would look for low cost funds. No load. Look at the large brokers. Vanguard is probably a good choice.
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