How are my Rate of Return in my Roth IRA?

[jazz4cash]

I used the Fidelity mobile app to go all on on FZROX at $142k just now. I was nervous. Hope I made the right move. The cash was settled in my Roth IRA money market account.

well done

 

[F.I.R.E User]

well done

If I did it in increments then I would be leaving my gains right?

 

[F.I.R.E User]

Filled at $15.25.

 

[jazz4cash]

If it’s a sideways move (selling one stock or fund and buying another) you’re better off investing it all at once. If you are making a major change of asset allocation buying or selling in increment could cause you to leave some gains on the table but it could go the other way if the market drops. No one knows in advance.

 

[RunningBum]

If it’s a sideways move (selling one stock or fund and buying another) you’re better off investing it all at once. If you are making a major change of asset allocation buying or selling in increment could cause you to leave some gains on the table but it could go the other way if the market drops. No one knows in advance.

I know this is how a lot of people think, but money is money whether it's sideways or new money. Sideways money is just as exposed to a market drop (or rise) as new money is. It's a psychological thing. I suppose if it makes you feel better to invest in increments go ahead, but my suggestion is to think logically and let your AA handle the volatility.

 

[F.I.R.E User]

If it’s a sideways move (selling one stock or fund and buying another) you’re better off investing it all at once. If you are making a major change of asset allocation buying or selling in increment could cause you to leave some gains on the table but it could go the other way if the market drops. No one knows in advance.

What about what I did yesterday? Best move?

 

[F.I.R.E User]

I know this is how a lot of people think, but money is money whether it's sideways or new money. Sideways money is just as exposed to a market drop (or rise) as new money is. It's a psychological thing. I suppose if it makes you feel better to invest in increments go ahead, but my suggestion is to think logically and let your AA handle the volatility.

Better to put big lump sum right?

 

[F.I.R.E User]

So I am putting the money in whenever I have the funds available.

 

[jazz4cash]

I know this is how a lot of people think, but money is money whether it's sideways or new money. Sideways money is just as exposed to a market drop (or rise) as new money is. It's a psychological thing. I suppose if it makes you feel better to invest in increments go ahead, but my suggestion is to think logically and let your AA handle the volatility.

Yeah, I think we are saying the same thing, actually.

 

[jazz4cash]

What about what I did yesterday? Best move?

Kobe one knows.
I think so but it really depends on time frame. The longer the better.

 

[F.I.R.E User]

Yeah, I think we are saying the same thing, actually.

Studies have shown to put it all in at once for better ROI.

 

[F.I.R.E User]

Kobe one knows.
I think so but it really depends on time frame. The longer the better.

Time will tell.

 

[RunningBum]

Yeah, I think we are saying the same thing, actually.

You're right, I misread your post, sorry.

 

[Al in Ohio]

Should have dollar cost averaged each active trading hour over the next 10 days by dividing the total settlement into 80 increments.



…Or not

 

[F.I.R.E User]

Should have dollar cost averaged each active trading hour over the next 10 days by dividing the total settlement into 80 increments.



…Or not

Why?

 

[F.I.R.E User]

Should have dollar cost averaged each active trading hour over the next 10 days by dividing the total settlement into 80 increments.



…Or not

What’s the benefit?

 

[WhenIsItTime]

This thread hurts my head. Bamboozled to blindly following. Scary.

Not sure it’s wise to trade before the learning progresses. Missing lots of context for the advice given. The unintentional bias in this forum is strong. New user beware.

 

[F.I.R.E User]

This thread hurts my head. Bamboozled to blindly following. Scary.

Not sure it’s wise to trade before the learning progresses. Missing lots of context for the advice given. The unintentional bias in this forum is strong. New user beware.

What is your advice? What’s biased about it?

 

[PhrugalPhan]

Going back to the original poster, I too started my Roth IRA in 2007. However I consistently put in the yearly limits, plus rolled in an extra $10k in 2010. I am showing $106k of contributions over those 15 years. Twice what the OP put in, though he was heavier in the early years, and I contributed constantly throughout. I am currently at $234k. Don't know what my ROI would be, probably something similar to the OP as well.

 

[F.I.R.E User]

Going back to the original poster, I too started my Roth IRA in 2007. However I consistently put in the yearly limits, plus rolled in an extra $10k in 2010. I am showing $106k of contributions over those 15 years. Twice what the OP put in, though he was heavier in the early years, and I contributed constantly throughout. I am currently at $234k. Don't know what my ROI would be, probably something similar to the OP as well.

Rolled $10 by what method?

 

[PhrugalPhan]

Rolled $10 by what method?

Rolled in $10k from a rollover IRA. In 2010 (I believe) you were allowed to pay the tax hit on rollovers over two years instead of one, so I took advantage of that to get rid of the IRA and move the money into my Roth.

 

[F.I.R.E User]

Rolled in $10k from a rollover IRA. In 2010 (I believe) you were allowed to pay the tax hit on rollovers over two years instead of one, so I took advantage of that to get rid of the IRA and move the money into my Roth.

Oh ok. What can do this now? So the goal is to move from t401k to Roth IRA to avoid all taxes?

 

[WhenIsItTime]

What is your advice? What’s biased about it?

You asked for help computing and comparing ROI. You have shown existing investments, but I didn’t see where you posted a target AA. You are asking many relevant questions.

Seems you are relying heavily on others advice, originally an advisor and now forum strangers.

This forum has a strong bias for DIY and ~3 fund portfolios. I generally believe in that. You are being giving emphatic advice in that direction. These folks don’t understand the relevance of this account to your overall portfolio or AA, or your comfort with executing the changes.

These topics are learnable and this broader forum is a good place to do that, but I feel like the direction is coming faster than the education in a one size fits all approach.

I would suggest to someone in your situation to keep asking questions, but hold off on making transactions until having accumulated some knowledge and confidence.

 

[pb4uski]

I think posts #64 and #81 provided the OP with the tools that he needed to answer the question in the OP.

 

[F.I.R.E User]

You asked for help computing and comparing ROI. You have shown existing investments, but I didn’t see where you posted a target AA. You are asking many relevant questions.

Seems you are relying heavily on others advice, originally an advisor and now forum strangers.

This forum has a strong bias for DIY and ~3 fund portfolios. I generally believe in that. You are being giving emphatic advice in that direction. These folks don’t understand the relevance of this account to your overall portfolio or AA, or your comfort with executing the changes.

These topics are learnable and this broader forum is a good place to do that, but I feel like the direction is coming faster than the education in a one size fits all approach.

I would suggest to someone in your situation to keep asking questions, but hold off on making transactions until having accumulated some knowledge and confidence.

Advisor wanted to make commission and did not have my best interest. Forum strangers want to help me for free.

I did post target AA. I wanted 100% stocks but my then EJ FA had me on 10% bonds.

Whether it’s 3, 2 or 1 fund. It works out right? I now have 1 fund FZROX.