How's the market doing? Invest in Roth?

[Broke_Triathlete]

I've been away from the stock market since the major drop late last year. Curious to know from those who pay close attention to the market if it'd be a good time to ramp up my contributions to my IRA (VG Target 2050)? 

Thanks!

[Anonymous]

 It is always a good time to ramp up contributions. That said, markets are pretty high in my opinion. What do you mean "ramp up" and would it be a one time thing?

[Broke_Triathlete]

I mean basically starting to contribute all over again. I started last year but after losing 20% I took the rest out and applied it towards the student loans. Now I'd like to contribute monthly unlike a lump sum like I did last time.

[mongstradamus]

You can DCA if you wish, but I think lump summing would be the better option. This is money you won't be touching for thirty years or so. Little changes in the market shouldn't matter at all.if you are afraid of your investment going down in your ira then you probably need something less aggressive . Something maybe closer to 60-40 as opposed to 90-10.

[Anonymous]

If your target year for retirment is 2050, then just contribute. If it goes down be happy cuz you can buy more shares with your money (and maybe even contribute more than normal), if it goes up be happy cuz your made money. 

[tacpoly]

---

@Broke_Triathlete wrote:
I mean basically starting to contribute all over again. I started last year but after losing 20% I took the rest out and applied it towards the student loans. Now I'd like to contribute monthly unlike a lump sum like I did last time.

---

You did the classic move:  buy high, sell low, and now you want to get in when the market is relatively high again. 

The way to get the most from your retirement fund is to keep investing through the ups and downs of the market.  That way you reap the benefits of the down market (being able to buy more stock for the amount of money you're investing) and the up market (your stocks are worth more).  Jumping in and out is not good.  If you are so nervous for your money, perhaps the stock market isn't the place to invest for you -- or perhaps you are investing too much?  You need to find a happy medium.

[Broke_Triathlete]

---

@tacpoly wrote:

---

@Broke_Triathlete wrote:
I mean basically starting to contribute all over again. I started last year but after losing 20% I took the rest out and applied it towards the student loans. Now I'd like to contribute monthly unlike a lump sum like I did last time.

---

You did the classic move:  buy high, sell low, and now you want to get in when the market is relatively high again. 

The way to get the most from your retirement fund is to keep investing through the ups and downs of the market.  That way you reap the benefits of the down market (being able to buy more stock for the amount of money you're investing) and the up market (your stocks are worth more).  Jumping in and out is not good.  If you are so nervous for your money, perhaps the stock market isn't the place to invest for you -- or perhaps you are investing too much?  You need to find a happy medium.

---

You're right. I invested a lump sum and got nervous because I was losing money and still have debt that I could help take care of. So I did what I'm sure a lot of people do. However, if I didn't have debt I would have let it sat. 

[mongstradamus]

---

@Broke_Triathlete wrote:

---

@tacpoly wrote:

---

@Broke_Triathlete wrote:
I mean basically starting to contribute all over again. I started last year but after losing 20% I took the rest out and applied it towards the student loans. Now I'd like to contribute monthly unlike a lump sum like I did last time.

---

You did the classic move:  buy high, sell low, and now you want to get in when the market is relatively high again. 

The way to get the most from your retirement fund is to keep investing through the ups and downs of the market.  That way you reap the benefits of the down market (being able to buy more stock for the amount of money you're investing) and the up market (your stocks are worth more).  Jumping in and out is not good.  If you are so nervous for your money, perhaps the stock market isn't the place to invest for you -- or perhaps you are investing too much?  You need to find a happy medium.

---

You're right. I invested a lump sum and got nervous because I was losing money and still have debt that I could help take care of. So I did what I'm sure a lot of people do. However, if I didn't have debt I would have let it sat. 

---

depending on the interest rate and amount of debt it may have been smarter to pay that off first if you aren't able to pay off debt and invest in ira at same time. 

[Imperfectfuture]

---

@mongstradamus wrote:

---

@Broke_Triathlete wrote:

---

@tacpoly wrote:

---

@Broke_Triathlete wrote:
I mean basically starting to contribute all over again. I started last year but after losing 20% I took the rest out and applied it towards the student loans. Now I'd like to contribute monthly unlike a lump sum like I did last time.

---

You did the classic move:  buy high, sell low, and now you want to get in when the market is relatively high again. 

The way to get the most from your retirement fund is to keep investing through the ups and downs of the market.  That way you reap the benefits of the down market (being able to buy more stock for the amount of money you're investing) and the up market (your stocks are worth more).  Jumping in and out is not good.  If you are so nervous for your money, perhaps the stock market isn't the place to invest for you -- or perhaps you are investing too much?  You need to find a happy medium.

---

You're right. I invested a lump sum and got nervous because I was losing money and still have debt that I could help take care of. So I did what I'm sure a lot of people do. However, if I didn't have debt I would have let it sat. 

---

depending on the interest rate and amount of debt it may have been smarter to pay that off first if you aren't able to pay off debt and invest in ira at same time. 

---

Yep, I like to relate a little to Dave Ramsey's advice.  Keep a certain amount in emergency savings (new electronics when one breaks is not an emergency), then pay down debt.  However, I veer with leaving my current investments intact, have my emergencies saved up, THEN stop investing while pay off 0% cards.  Once done, start over again.  Reap benefits several ways, still accumulating if using drip method, show very responsible credit usage, get a few clis from companies that like the usage, maintain interest in basic savings (preferably high interest bearing accounts), and reach great Fico score all at the same time.  Not for the meek.  If your employer is matching, or even giving you restricted stock options, than work that and your pay off.  Either increase income, or really cut back.  When you reach 65 or 67, you will be really grateful.

[RonM21]

I agree with making sure you have some on the side for emergency.