| investing my roth ira into s&p 500? |
|
|
|
|
|
myfootsmells
New Poster
Cash: $ 0.45
Posts: 2
Joined: 27 Jun 2005
Location: Pasadena, CA
|
| investing my roth ira into s&p 500? |
 |
|
i'm looking to invest my roth ira into the s&p 500, any thoughts on this?
i'm 23 yrs old and don't mind risk right now. i know hardly any funds ever beat the s&p 500 and that's why i'm looking into this option. opinions?
thanks
myfootsmells
|
Mon Jun 27, 2005 9:22 pm |
|
|
David Briggs
Senior Member
Cash: $ 57.86
Posts: 289
Joined: 16 Jan 2005
|
What is the actual security you are proposing to acquire to emulate the performance of the S&P 500?
How do you feel about buying and selling portions of a core holding in that security to take advantages of fluctuations in the market?
~~David
|
|
Mon Jun 27, 2005 10:26 pm |
|
|
myfootsmells
New Poster
Cash: $ 0.45
Posts: 2
Joined: 27 Jun 2005
Location: Pasadena, CA
|
quote:
Originally posted by David Briggs
What is the actual security you are proposing to acquire to emulate the performance of the S&P 500?
How do you feel about buying and selling portions of a core holding in that security to take advantages of fluctuations in the market?
possibly vanguard? do u mean spread my money into the companies that make up the s&p 500? i could do that.
|
|
Mon Jun 27, 2005 10:28 pm |
|
|
MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
|
quote:
Originally posted by myfootsmells
do u mean spread my money into the companies that make up the s&p 500? i could do that.
Unless you have ALOT of money expenses would be much higher. You would also have to manage it or pay someone else to manage it so it keeps tracking correctly and maintains the correct balance. You are generally much better off going with an index fund. Vanguard is a fine choice.
Debt Elimination
|
|
Tue Jun 28, 2005 1:43 pm |
|
|
David Briggs
Senior Member
Cash: $ 57.86
Posts: 289
Joined: 16 Jan 2005
|
No, don't buy the individual companies. I just wondered which index fund you thought you might use.
My main suggestion is not to simply buy and hold on a fully invested basis. Instead, hold a 1/2 invested core position in your index fund and maximize opportunities to capitalize on the fluctation in the share price. When its price is low, buy more (up to fully invested). When its price is high, sell some but not all (down to your 1/2 invested core position). Just a way to magnify your return.
Will they let you buy DIA? I love that one because it pays a monthly dividend.
~~David
|
|
Sun Jul 03, 2005 9:08 pm |
|
|
PFFrank
Member
Cash: $ 3.00
Posts: 15
Joined: 22 Jul 2005
|
quote:
Originally posted by David Briggs
When its price is low, buy more (up to fully invested). When its price is high, sell some but not all (down to your 1/2 invested core position). Just a way to magnify your return.
Are you suggesting trying to time the market? That could be little dangerous for someone who is relatively new to investing.
|
|
Fri Jul 22, 2005 8:28 pm |
|
|
David Briggs
Senior Member
Cash: $ 57.86
Posts: 289
Joined: 16 Jan 2005
|
Not that sophisticated, really. Buy more if the price goes lower than your core price. Sell some if the price goes higher than your core price. It is just cost averaging and taking profits using a 1/2 core position and a 1/2 trading reserve.
~~David
|
|
Fri Jul 22, 2005 11:05 pm |
|
|
joseanes
Full Member
Cash: $ 10.20
Posts: 76
Joined: 30 Aug 2005
Location: Marlborough, MA
|
| Re: investing my roth ira into s&p 500? |
|
|
quote:
Originally posted by myfootsmells
i'm looking to invest my roth ira into the s&p 500, any thoughts on this?
i'm 23 yrs old and don't mind risk right now. i know hardly any funds ever beat the s&p 500 and that's why i'm looking into this option. opinions?
This is Exactly what I do.
Vanguard 500.
29 years old, been investing in Vanguard since 24.
|
|
Tue Aug 30, 2005 2:03 pm |
|
|
Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
|
| Re: investing my roth ira into s&p 500? |
|
|
quote:
Originally posted by myfootsmells
i know hardly any funds ever beat the s&p 500 ...
Not. Quite. Right.
It IS true that 2/3 of the funds available do NOT beat the S&P500 benchmark. However, with around 10,000 funds available, that leaves ~3,300 funds that do better. There are PUH-LENTY of funds out there that trounce the S&P500. Due dilligence is how you find them.
This is why I do not care for index funds: as of today, S&P500 1-year return = 10.85%. All of my accounts = 36.22% (and my 403b only lets me have index funds, so I do have some in there...watering it down, heh). Seeing the difference reminds me that my extra effort is worth it.
Only exception: I would love to find an AMEX composite comparable fund.
"Expect me when you see me."
|
|
Wed Aug 31, 2005 12:06 am |
|
|
|
