stocks or Mutual Funds for roth ira

[DCguy]

I recently started a roth ira and am looking to buy some stock or mutual fund shares. which is better and what stock or mutual fund should I buy? thx.

 

[CountryBoy]

I recently started a roth ira and am looking to buy some stock or mutual fund shares. which is better and what stock or mutual fund should I buy? thx.

Hey DCGuy,

Your question sure covers a lot of ground and a person’s specific circumstances, like risk adverse level, time to retirement, other $ needs ( college for kids, house etc), you get the idea. Everyone’s circumstances are different and that will dictate how you invest.

As for my personal circumstances, I’m 3 to 7 years from retirement and my daughter graduates from college next spring, so I’ll see a raise when she moves out. and tend to be more conservative in my stock selections.

Right now, I contribute to my TSP to get all the matching funds, then I Max out 2 ROTH IRA's, me and my wife, and then any extra I may try to put back the TSP, but I’ll have to give that some serious thought, since they have screwed us on the number of IFT’s.

I have 12 stocks in my Roth, mainly solid dividend and decent yield stocks. I also diversify among the stock sectors. I do a little of the Dogs of the Dow method, plus a few others that may catch my fancy. I really don’t have the amount of funds to make it worthwhile to be a trader to buy and sell, in sufficient quantity to make a profit based on percentage rises in stock prices, so I go the stock Divvy and yield route mainly, GE, T, UTX, PG, JNJ, DUK, KMR, BP to name a few and DSX to add some sexiness to the ROTH. :laugh:

So one size doesn't fit all or maybe one size just fits one when it comes to investments.

Hope this helps,
CB

 

[Skooby]

I'm with T Rowe Price...target retirement fund 2040.

Do any of you look at the morningstar ratings?

 

[Show-me]

I recently started a roth ira and am looking to buy some stock or mutual fund shares. which is better and what stock or mutual fund should I buy? thx.

Depends on your risk. Stock are riskier and have higher potential for reward. Mutual funds are much more diversified and managed.