How is it possible in losing money with an IRA?

Question

I thought IRA's we meant to be left alone and gain a li'l interest, a li'l and that it would fall down. I just checked my IRA and I lost a li'l bit...

Answer 1

Whatever you have the money invested in , in your IRA has lost money. Just because you have it in an IRA is no guarantee you will make money. You need to monitor what the money is invested in. Sounds like you need a broker to help advise you.

Answer 2

It would help if we knew more about the IRA account you set up. You can have any type of investment inside an IRA, and some have risk of loss and some don't. If you set it up at a bank or credit union, it's probably in a guaranteed fund like a CD, so the only loss you might possibly see would be from fees. That doesn't mean this is your best bet, though, because higher risk means higher return potential.

If the IRA is in a mutual fund or some kind of actual investment, I wouldn't worry too much that the value has dropped. The market is down right now, it's not a big deal unless you're retiring in the next few years.