I have a Roth IRA and will invest $5,500 in it again in 2014 (the max I am allowed to contribute). Should I just put it in right away. Or, because prices are so high, should I wait a few months and hope prices go down? I invest in a Vanguard mutual fund that is comprised of 20% bonds and 80% stocks. I know this is a general question, but any tips are appreciated. Thank you.
Be lame like me and split it up over 2x/month contributions. Dollar cost averaging isn't very exciting, but is easier than trying to figure out this stock market.
Isn't that putting it near what could a top of the market? You can't guess the top or bottom but this has to be lot closer than a year ago.
8s8s wrote:
I have a Roth IRA and will invest $5,500 in it again in 2014 (the max I am allowed to contribute). Should I just put it in right away. Or, because prices are so high, should I wait a few months and hope prices go down? I invest in a Vanguard mutual fund that is comprised of 20% bonds and 80% stocks. I know this is a general question, but any tips are appreciated. Thank you.
Good question as I'm in a near identical situation. I regret not putting my money in sooner in 2013, but I just didn't think the market would keep rising the way it was, but it did. Will the market keep rising through all of 2014? I don't know. Because I contributed my $5,500 to my Roth pretty late in 2013 and because I may have some sizable expenses soon, I am holding off on dumping another $5,000 in right away. It is hard to say what the market will do over the next 12 months, but considering people have been talking about a minor collapse for nearly a year now, I suspect it will not continue to climb throughout the entire year and may be lower 8-12 months from now than it is right now.
My knowledge is pretty limited on the market though, and I have my own reasons as stated, so it'd probably be best not to consider my thoughts to heavily. haha.
Thanks. I decided to put the $5,500 in yesterday. I decided that timing the market is a fool's game (at least for this uneducated fool). I'm comfortable with the notion that time in the market may be more important than timing the market.
8s8s wrote:
Thanks. I decided to put the $5,500 in yesterday. I decided that timing the market is a fool's game (at least for this uneducated fool). I'm comfortable with the notion that time in the market may be more important than timing the market.
This was the correct answer, assuming you had the money immediately available and not needed for something with a higher priority ( i.e. Mortgage, credit card, etc.). Good for you!
Thank you! Yes, I had the money available for immediate investing.