Author Topic: Stock market sucks right. Continue contributing to Roth IRA?  (Read 11768 times)

investor_n00b

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I just opened a Roth IRA and started contributing a few grand. I've invested in Vanguard ETFs and some bonds. The stock market seems to be sucking hard right now. I have already lost over 100 bucks. Should I just ignore how crappy the stock market is and keep putting money into it for the long term? At what point should I question my investments?

dandarc

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #1 on: June 30, 2015, 07:46:57 AM »
Better to buy when prices are low anyway.  Execute the plan, keep buying, the market will do what the market will do.

You only "lost $100" if you sell.

Le Barbu

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #2 on: June 30, 2015, 08:02:26 AM »
Le Barbu lost 15k$ yesterday...
just think you buy with a discount this week!

investor_n00b

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #3 on: June 30, 2015, 08:03:03 AM »
Is it better to put money in it each month or one lump sum at the end of the year?

forummm

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #4 on: June 30, 2015, 08:04:25 AM »
To paraphrase:

"Retirement is for contributors."

"Always be contributing! Always be contributing! A--always, B--be, C--contributing!"

https://www.youtube.com/watch?v=Q4PE2hSqVnk

I'm a red panda

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #5 on: June 30, 2015, 08:06:38 AM »
Is it better to put money in it each month or one lump sum at the end of the year?

Monthly.  If you buy at the end of the year, and that is the high- well you got screwed.  By buying a little at a time, you get the ebbs and flows.  You might buy high sometimes, but other times you would buy low.

Unless these investments are for short term purchases- now IS the time to be investing in the stock market. Because it "sucks" right now, you are buying low and hopefully in 30 years the value will increase greatly.  If the stock market was booming- you'd be buying high, and maybe it won't have room to grow.


Stocks are the only thing people don't like to buy on sale.

dandarc

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #6 on: June 30, 2015, 08:08:18 AM »
It is better to invest as soon as you have the money to invest.  The market always goes up (see below), so if you wait to invest, you're fighting against a rising average.

http://jlcollinsnh.com/2012/04/19/stocks-part-ii-the-market-always-goes-up/

mtn

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #7 on: June 30, 2015, 08:19:20 AM »
Always be contributing, as much as you can contribute. Get a big bonus in December? Good! Max out that IRA in January. Can't max it out in January? Do it as soon as you can.

So to answer your question, it is better to do it in one lump sum IF you get one lump sum (or have one lump sum). Otherwise do not be stock-piling it to invest it later.

Gone Fishing

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #8 on: June 30, 2015, 08:27:46 AM »
Le Barbu lost 15k$ yesterday...

I didn't look, but I am probably down by a similar amount, so I bought more!

EricP

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #9 on: June 30, 2015, 08:34:58 AM »
Is it better to put money in it each month or one lump sum at the end of the year?

With your IRA it's best to load it all up on January 1st if possible.  If not, do it as early as possible.  With your 401k it depends on if your employer matches and if they "true up" the match.  If they don't match, then load it up as early as possible, If they do match then find out if they "true up" their matches at the end of the calendar year.  If they do, then go ahead and front load, if they don't then you need to spread it out over the entire year.  Most employers don't true up their matches, I believe.

"Trueing up" just refers to them ensuring that you get matched based on your yearly salary not based on a per pay period salary.  If they don't true up then by contributing it all in the first 6 months will get you 3% (for example) of your first 6 months salary, instead of 3% of your annual salary.  If they true up, at the end of the year they'll go back and see that you only got 1.5% and then throw the other 1.5% on at the end of the year.

RWD

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #10 on: June 30, 2015, 08:38:39 AM »
To paraphrase:

"Retirement is for contributors."

"Always be contributing! Always be contributing! A--always, B--be, C--contributing!"

https://www.youtube.com/watch?v=Q4PE2hSqVnk

"I'd wish you good luck but you wouldn't know what to do with it if you got it." What a great line. Reminds me of: "Luck is what happens when preparation meets opportunity."

johnny847

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #11 on: June 30, 2015, 08:50:49 AM »
Ignore the noise OP. Just keep contributing when you can afford it, without regard to how the market is doing.

Years from now you'll thank yourself.

Le Barbu

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #12 on: June 30, 2015, 09:54:18 AM »
Le Barbu lost 15k$ yesterday...

I didn't look, but I am probably down by a similar amount, so I bought more!

For some reasons, I got to wait until july 7th to buy a 18k$ chunk of VBR. Hope the drop will last...

dandarc

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #13 on: June 30, 2015, 11:44:53 AM »
Le Barbu lost 15k$ yesterday...

I didn't look, but I am probably down by a similar amount, so I bought more!

For some reasons, I got to wait until july 7th to buy a 18k$ chunk of VBR. Hope the drop will last...
I get paid next week too.  Here's to the market tanking a bit more before then!

Kaspian

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #14 on: June 30, 2015, 11:52:38 AM »
I get paid next week too.  Here's to the market tanking a bit more before then!

Exactamundo!!  I have mine automated every two weeks but this whole year it seems to be in a rotten timing cycle.  My last big purchase was on the 15th, when all asset classes were being stadium rockstars.  Next purchase is on the 6th. It wouldn't bug me so much but the markets have been ebbing and flowing all year with me buying on pretty much all the damn ebbs.  Hahaha...  I'd change the cycle by a week, but know that's a lose situation--like changing lines at a grocery store.  :)


lemanfan

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #15 on: June 30, 2015, 11:57:26 AM »
As long as you are in the contributing mode (i.e. putting money in to the funds) you should be glad of lower prices.   

A quote from the 1997 Berkshire Hathaway chairmans letter to the stockholders:

Quote
       A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? These questions, of course, answer themselves.

       But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

http://www.berkshirehathaway.com/letters/1997.html

johnny847

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #16 on: June 30, 2015, 12:07:06 PM »
I get paid next week too.  Here's to the market tanking a bit more before then!

Exactamundo!!  I have mine automated every two weeks but this whole year it seems to be in a rotten timing cycle.  My last big purchase was on the 15th, when all asset classes were being stadium rockstars.  Next purchase is on the 6th. It wouldn't bug me so much but the markets have been ebbing and flowing all year with me buying on pretty much all the damn ebbs.  Hahaha...  I'd change the cycle by a week, but know that's a lose situation--like changing lines at a grocery store.  :)
Or like changing lanes in traffic ;)

Le Barbu

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #17 on: June 30, 2015, 12:49:59 PM »
I get paid next week too.  Here's to the market tanking a bit more before then!

Exactamundo!!  I have mine automated every two weeks but this whole year it seems to be in a rotten timing cycle.  My last big purchase was on the 15th, when all asset classes were being stadium rockstars.  Next purchase is on the 6th. It wouldn't bug me so much but the markets have been ebbing and flowing all year with me buying on pretty much all the damn ebbs.  Hahaha...  I'd change the cycle by a week, but know that's a lose situation--like changing lines at a grocery store.  :)

I always take the line with the BEST line-up or cashier.
This way, I don't mind if I wait longer...

zephyr911

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #18 on: June 30, 2015, 02:08:38 PM »
Le Barbu lost 15k$ yesterday...

I didn't look, but I am probably down by a similar amount, so I bought more!
WTF happened yesterday? I barely watch the market at all. It's the only way I stay sane. The less I look, the happier I am when I do look.

I just opened a Roth IRA and started contributing a few grand. I've invested in Vanguard ETFs and some bonds. The stock market seems to be sucking hard right now. I have already lost over 100 bucks. Should I just ignore how crappy the stock market is and keep putting money into it for the long term? At what point should I question my investments?
If you're here, you've probably read some MMM articles. One of his big things is to look at the long term for investing. You're not trying to retire next week... you're trying to retire in 10 years (or 20... whatever). Stocks fluctuate. The whole market fluctuates. But in the long run, it has always gone up over long periods of time.
« Last Edit: June 30, 2015, 02:11:22 PM by zephyr911 »

trailrated

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #19 on: June 30, 2015, 02:14:32 PM »
I just opened a Roth IRA and started contributing a few grand. I've invested in Vanguard ETFs and some bonds. The stock market seems to be sucking hard right now. I have already lost over 100 bucks. Should I just ignore how crappy the stock market is and keep putting money into it for the long term? At what point should I question my investments?

You are essentially saying you prefer to buy as the price is going up. You are supposed to buy low - sell high. And if you are freaking out about buying low you need to come up with a written plan for you to follow so your emotions don't end up fucking your returns. Here is a little how-to on getting started. Good luck and welcome to the forum.

http://www.bogleheads.org/wiki/Investment_policy_statement

lemanfan

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #20 on: June 30, 2015, 02:36:47 PM »
WTF happened yesterday?

A sunny country in southern Europe has some problems with their debt.  Nothing to worry about. ;)

NoraLenderbee

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #21 on: June 30, 2015, 05:02:32 PM »
The Dow is what, 3% off its all-time high? This isn't sucking; it's normal fluctuation. Take a long view. Don't look at it every day.

seattlecyclone

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #22 on: June 30, 2015, 05:51:53 PM »
The Dow is what, 3% off its all-time high? This isn't sucking; it's normal fluctuation. Take a long view. Don't look at it every day.

This. Very much this. If the events of the last week have given you pause about investing in the stock market, maybe you're not ready to take that plunge yet. Heaven help you if you invest now and we go into a real downturn.

Eric

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #23 on: June 30, 2015, 06:49:52 PM »
The Dow is what, 3% off its all-time high? This isn't sucking; it's normal fluctuation. Take a long view. Don't look at it every day.

This. Very much this. If the events of the last week have given you pause about investing in the stock market, maybe you're not ready to take that plunge yet. Heaven help you if you invest now and we go into a real downturn.

This 7 year bull has really skewed some perspectives. 

charis

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #24 on: July 01, 2015, 10:01:27 AM »
I understand the OP's initial reaction.  It happens to everyone who starts investing for the first time and the market goes down a little the next day.  $100 is really nothing.  You will get used to the fluctuations as time goes on.

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #25 on: July 01, 2015, 10:29:43 AM »
I just opened a Roth IRA and started contributing a few grand. I've invested in Vanguard ETFs and some bonds. The stock market seems to be sucking hard right now. I have already lost over 100 bucks. Should I just ignore how crappy the stock market is and keep putting money into it for the long term? At what point should I question my investments?
Do NOT STOP INVESTING NOW!!! Sorry for the shout, but this IS the time to buy stocks. We don't know for how long the stock market will go down, but you have to see this long term, not short. Like many have said, you are now buying stocks at a rebate. It's on sale, so now it's time to buy,buy, buy...sorry to sound like a salesmen, but do not make the mistake of withdrawing, you will thank me and the MMM community in the future when the stock market is back up again.

I started investing during the 2008 recession, while everyone was selling, I was buying them at silly prices. Today, my investments are doing very well because I stayed in. Those who quit during the recession would of seen their investments gone way high instead of losing money. Stay patient, invest and don't worry about it. Because Greece is doing bad now, does not mean that the next 20 years will be just as bad or in 30 years...and so on...Things change quickly in this game. The real winners are those who stick through the good and the bad.

Wads

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #26 on: July 01, 2015, 03:54:22 PM »
If your freaking out about a loss of $100 you should stop investing. Take some time and read Jim collins stock series. Once completed, you need to decide if you have the gut for it. Most people don't which is why they lose money and sell when prices begin to pullback. For most, staying in cash is the best option as the can't handle the roller coaster ride of investing.

http://jlcollinsnh.com/stock-series/

fartface

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #27 on: July 01, 2015, 04:05:02 PM »
As long as you are in the contributing mode (i.e. putting money in to the funds) you should be glad of lower prices.   

A quote from the 1997 Berkshire Hathaway chairmans letter to the stockholders:

Quote
       A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? These questions, of course, answer themselves.

       But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the "hamburgers" they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

http://www.berkshirehathaway.com/letters/1997.html

Excellent. I've always prided myself on being a "contrarian" buyer. I knew early Monday morning when the news about Greece was announced it was going to be a big RED day on Wall Street, aka, great buying opportunity.

To date, my best contrarian buys were MCD (McDonalds) and F (Ford) in early 2003. MCD was down to $10/share and Ford was around $1. I was a SAHM at the time and *only* had about $3K for MCD and maybe $1K for F. In the end it was still a good play. Sold the Ford stock long ago around 15, but still hold MCD!

Cycling Stache

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #28 on: July 01, 2015, 04:44:43 PM »
Just to be clear, the market is down about 3% from its all-time high.  I don't think we're in "buying" mode yet, unless you buy whenever you have the money to buy (which I'm pretty sure you should).  Getting excited about a net 1.5% drop due to Greece is probably a little premature.

BUT I do think it's nice to see the enthusiasm everyone is showing for not selling due to a market drop, and hope that continues if and when the market drops much more.

Keep investing!

dungoofed

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #29 on: July 01, 2015, 04:46:39 PM »
If your freaking out about a loss of $100 you should stop investing. Take some time and read Jim collins stock series. Once completed, you need to decide if you have the gut for it. Most people don't which is why they lose money and sell when prices begin to pullback. For most, staying in cash is the best option as the can't handle the roller coaster ride of investing.

http://jlcollinsnh.com/stock-series/

+1

Sounds like OP has enough skin in the game to care, but not enough so that getting out at the bottom would devastate him/her financially. The perfect time to take a step back.

btw forummm - love that scene. It got me through some really tough times at my old job.

Left

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #30 on: July 01, 2015, 04:55:37 PM »
I got lucky and added $10k to my portfolio on Monday and used it all on vti/vxus. Sure they might drop more, but so what? I don't even know how much I have in portfolio, just the amount that I added on a normal basis (I look when I add more money but the rest of the time, I'm clueless to the $ amount since I don't look at it).

But I do know that I'm up for this year by about $2k, sure it isn't much... but it is $2k more than banks would have given me.

charis

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #31 on: July 02, 2015, 08:26:54 AM »
Just to be clear, the market is down about 3% from its all-time high.  I don't think we're in "buying" mode yet, unless you buy whenever you have the money to buy (which I'm pretty sure you should).  Getting excited about a net 1.5% drop due to Greece is probably a little premature.

Maybe excited is a little too much, but it's cheaper than what I've been buying at for the last six months, so I'll take it.

Kaspian

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #32 on: July 02, 2015, 12:58:04 PM »
The Dow is what, 3% off its all-time high? This isn't sucking; it's normal fluctuation. Take a long view. Don't look at it every day.

This. Very much this. If the events of the last week have given you pause about investing in the stock market, maybe you're not ready to take that plunge yet. Heaven help you if you invest now and we go into a real downturn.

This 7 year bull has really skewed some perspectives.

Right on, Eric.  ...Though "some" could easily be replaced by "many".  :)

jsternitzky

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #33 on: July 02, 2015, 01:36:38 PM »
Better to buy when prices are low anyway.  Execute the plan, keep buying, the market will do what the market will do.

You only "lost $100" if you sell.


Stop looking at your investments daily. Check it maybe once a quarter... Only if you are anal. Otherwise just let it ride for the ling haul.

gReed Smith

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #34 on: July 02, 2015, 01:59:15 PM »
So weird to see someone say the stock market sucks right now.  It's been a little flat this calendar year, but since the spring of 2009, the stock market has been amazing.  I would gladly trade some flat months now for a steeper gain later after I have made more contributions.

Cougar

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Re: Stock market sucks right. Continue contributing to Roth IRA?
« Reply #35 on: July 02, 2015, 09:17:43 PM »

since youre just starting, you might try and contact a bunch of low fee fund companies and see if they have roth iras that you can transfer from an index fund to a money mkt fund or a bond fund within the roth.

i know you can do that in non-roth; i would there are roths that would be the same. now, there are probably limits like you can only do that once every 6 months with your current fund; but that is to be expected.


in addition, july thru october are typically down months for the mnarket and november thru april are typically up months; so the odds are that you will lose money over the next few months; but you will have to figure out whats best for you and commit to piling up money in savings until it looks good again. i mean its going to drop 25% before it goes up another 100% again, but it could be 3 years, go no where this year and up 10 percent next year before it does that. you really have to find some forecsasters you believ in and follow their allocations. like slope of hope is a perma bear, considering the past 6 years; i cant believe he's still in business.