5k into Roth IRA?

[sd_bear]

stockstradr,

unfortunately im 26, 5k is 20% of my retirement portfolio. i know you deal with stocks all day but i don’t have the time, the patience, or the stomach to watch the wild swings and try to make a quick buck. i do appreciate the advice but i can’t commit to strategy’s like that right now.

i haven’t turned my back on stocks overall. ive had indexes since i was a kid, which is where the majority of my money has been, but for the retirement portion of my assets i was looking to be a bit more conservative in this climate and did not want to dedicate hours each day to manage it.

[sd_bear]

[quote=cooperthedog]Definitely contribute to your ROTH. Its better to have the money tax sheltered, and you can still stay in “cash” if you wish.

In addition, have you considered selling cash-secured put options at the price your willing to buy the index at (Dow 7000 in your case)? You will receive relatively large premiums while the volatility is high. This still allows you to keep all your funds in a money market (plus the premium from selling the option). I’d recommend options 1-3 months out. The risk is that the index blows through your “7000” strike price (since you will be assigned at that price), this also makes the option much more valuable, thus closing out the position will cost considerably more then the index level at the time (closing out the position before expiration could result a net a loss even if the underlying is above the strike). If this interests you, familiarize yourself with options thoroughly.
[/quote]

i like this idea for my non IRA money. i will do more research into setting up put options at my targets.

[sd_bear]

[quote=cooperthedog]Definitely contribute to your ROTH. Its better to have the money tax sheltered, and you can still stay in “cash” if you wish.

In addition, have you considered selling cash-secured put options at the price your willing to buy the index at (Dow 7000 in your case)? You will receive relatively large premiums while the volatility is high. This still allows you to keep all your funds in a money market (plus the premium from selling the option). I’d recommend options 1-3 months out. The risk is that the index blows through your “7000” strike price (since you will be assigned at that price), this also makes the option much more valuable, thus closing out the position will cost considerably more then the index level at the time (closing out the position before expiration could result a net a loss even if the underlying is above the strike). If this interests you, familiarize yourself with options thoroughly.
[/quote]

i like this idea for my non IRA money. i will do more research into setting up put options at my targets.

[sd_bear]

[quote=cooperthedog]Definitely contribute to your ROTH. Its better to have the money tax sheltered, and you can still stay in “cash” if you wish.

In addition, have you considered selling cash-secured put options at the price your willing to buy the index at (Dow 7000 in your case)? You will receive relatively large premiums while the volatility is high. This still allows you to keep all your funds in a money market (plus the premium from selling the option). I’d recommend options 1-3 months out. The risk is that the index blows through your “7000” strike price (since you will be assigned at that price), this also makes the option much more valuable, thus closing out the position will cost considerably more then the index level at the time (closing out the position before expiration could result a net a loss even if the underlying is above the strike). If this interests you, familiarize yourself with options thoroughly.
[/quote]

i like this idea for my non IRA money. i will do more research into setting up put options at my targets.

[sd_bear]

[quote=cooperthedog]Definitely contribute to your ROTH. Its better to have the money tax sheltered, and you can still stay in “cash” if you wish.

In addition, have you considered selling cash-secured put options at the price your willing to buy the index at (Dow 7000 in your case)? You will receive relatively large premiums while the volatility is high. This still allows you to keep all your funds in a money market (plus the premium from selling the option). I’d recommend options 1-3 months out. The risk is that the index blows through your “7000” strike price (since you will be assigned at that price), this also makes the option much more valuable, thus closing out the position will cost considerably more then the index level at the time (closing out the position before expiration could result a net a loss even if the underlying is above the strike). If this interests you, familiarize yourself with options thoroughly.
[/quote]

i like this idea for my non IRA money. i will do more research into setting up put options at my targets.

[sd_bear]

[quote=cooperthedog]Definitely contribute to your ROTH. Its better to have the money tax sheltered, and you can still stay in “cash” if you wish.

In addition, have you considered selling cash-secured put options at the price your willing to buy the index at (Dow 7000 in your case)? You will receive relatively large premiums while the volatility is high. This still allows you to keep all your funds in a money market (plus the premium from selling the option). I’d recommend options 1-3 months out. The risk is that the index blows through your “7000” strike price (since you will be assigned at that price), this also makes the option much more valuable, thus closing out the position will cost considerably more then the index level at the time (closing out the position before expiration could result a net a loss even if the underlying is above the strike). If this interests you, familiarize yourself with options thoroughly.
[/quote]

i like this idea for my non IRA money. i will do more research into setting up put options at my targets.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[(former)FormerSanDiegan]

AT age 26, you should not worry that much where stocks will be 5 years from now.

I am in my early 40’s. When I was 26 we were just recovering from recession.

If I had put $5000 into the S&P 500 when I was 26 it would be worth over $12000 today, add another ~$2000 in dividends and that’s not a horrible rate of return. Add to that the fact that we are on the back side of a 40-50% bear market and that stocks have returned nothing over the past decade.

If this Roth money is strictly for retirement :
If I were you I would drop about $3-4k into stocks at semi-intervals over the next 4 months. (assuming you can buy with either no-load or small fee of less than $10) Buy at the end of days where we see a huge decline. Keep the other $1-2K in Money Market until next year’s contribution. Rinse and repeat until you no longer qualify to contribute to a Roth.

In 20 years you will thank me.

If this Roth money is mainly for retirement, but you are considering it a place to grow money for the next 5 years for another reasons (some people do this because of provisions in the tax code e.g. to buy a house), then I wouldn’t put more than 20% into stocks.

[peterb]

Take a look at some of the better gold mining companies like GFI, HMY, ABX,etc…established gold mining companies kicked butt from 1929 to 1938. Very good chance it will happen again. The US$ will probably remain strong for quite some time as well. It’s up about 20% since Oct. All of this is just my opinion and where I’ve invested.

[peterb]

Take a look at some of the better gold mining companies like GFI, HMY, ABX,etc…established gold mining companies kicked butt from 1929 to 1938. Very good chance it will happen again. The US$ will probably remain strong for quite some time as well. It’s up about 20% since Oct. All of this is just my opinion and where I’ve invested.

[peterb]

Take a look at some of the better gold mining companies like GFI, HMY, ABX,etc…established gold mining companies kicked butt from 1929 to 1938. Very good chance it will happen again. The US$ will probably remain strong for quite some time as well. It’s up about 20% since Oct. All of this is just my opinion and where I’ve invested.

[peterb]

Take a look at some of the better gold mining companies like GFI, HMY, ABX,etc…established gold mining companies kicked butt from 1929 to 1938. Very good chance it will happen again. The US$ will probably remain strong for quite some time as well. It’s up about 20% since Oct. All of this is just my opinion and where I’ve invested.

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