Hi,
Last year, I opened my first Roth IRA. I funded it with the max 7000$, putting 3000$ into VASGX fund and 4000$ into VFIAX fund. The market was more sluggish then, but now stocks seem to be hot and my 7000$ have grown to about 8500$ in about a year, for a nice return.
Now it's time to fund the Roth for 2023, and I was wondering if I should invest again in the same funds. I assume the great returns I got right now are due to the fact that I invested in the funds when the markets were low. So, if I invest in these funds now that the markets are hot, would I not set myself up for losses as soon as the market cools down again? Basically, the opposite of what happened with my first investment? Should I rather invest in something else and wait to move the money into these funds when the markets are low? If so, which fund might be good to invest in instead? Or should I still invest into the above funds right now? I am 54 and can contribute 7500$.
Thanks for any info!
Last year, I opened my first Roth IRA. I funded it with the max 7000$, putting 3000$ into VASGX fund and 4000$ into VFIAX fund. The market was more sluggish then, but now stocks seem to be hot and my 7000$ have grown to about 8500$ in about a year, for a nice return.
Now it's time to fund the Roth for 2023, and I was wondering if I should invest again in the same funds. I assume the great returns I got right now are due to the fact that I invested in the funds when the markets were low. So, if I invest in these funds now that the markets are hot, would I not set myself up for losses as soon as the market cools down again? Basically, the opposite of what happened with my first investment? Should I rather invest in something else and wait to move the money into these funds when the markets are low? If so, which fund might be good to invest in instead? Or should I still invest into the above funds right now? I am 54 and can contribute 7500$.
Thanks for any info!
Statistics: Posted by newinvestor345 — Mon Mar 04, 2024 3:41 am — Replies 2 — Views 300