Investing Roth IRA
Hi Terry,
I was just contacted by Vanguard about investing my Roth IRA. I did not know that was possible, and they have never asked me that before, I have had the IRA for 6 years. Is this a smart thing to do in this current environment? If so, would you suggest bonds, like the VUG?
Thank you so much,
Terry Says
Well, your Roth IS invested — even if it is just in a money market fund! That’s a decision in iteself.
This might not be the best time to invest in stock market mutual funds. Or even in Bond funds (where the price goes down if interest rates rise).
And since you haven’t done so already, I’m going to recommend you stick with the money market fund, where you’ll just earn enough to keep up with inflation — and won’t lose a penny!
My only caveat to this advice is if you’re under age 55. In that case, put half in the S&P 500 stock fund, and take the risk over the long run, at least 20years.
