My Roth IRA'S are not making much money, should I pull them out. Or keep them in there? ?

Question

My Roth IRA'S are not making much money, should I pull them out. Or keep them in there? ?

Answer 1

Hey KN,

If your Roth IRAs aren't making money, then you need to change what you've invested in but you definitely don't need to pull money out. The beauty of a Roth IRA is that, as long as you've invested in stocks, bonds or funds that increase in value, you will not be taxed. That's a VERY good deal, so don't be hasty pulling your tax-protected money out of these special accounts. Check out http://www.money-and-investing.com/Roth-... before you decide, it's a nice introductory guide to tax free investing (IRAs, Roth IRAs & 401ks).

It also sounded like the securities you are buying are riskier than you are comfortable with. If capital preservation (protecting your nest egg) is your main concern, you should probably move some money into bonds, blue chips or conservative ETFs. A good place to go to learn about various investing strategies is http://www.money-and-investing.com/Stock...

Best of luck to you KN! Post back here often so we can watch your progress. It's fun to watch beginning investors on their wealth-building journey.

Cheers,

Odd Lot