Good or bad time for to open IRA?

[sweeps]

The Prime Money Market is a fund, and since it's in a SEP IRA it is automatically tax-deferred. What you're doing is logical -- as long as you understand keeping your money in a "safe" investment means your money won't grow much over the long-term.

[Troyrb]

Ok thanks. It just through me because I seen people talking about the check writing ability of the Vanguard Prime MM fund. I didn't think a SEP-IRA had this ability because they where tax-deferred.

[humandraydel]

and then the next day, you lost that gain It was an exciting ride up due to the Fed's announcement on March 17.

Yep. And then yesterday I made it back again! That's my point! Up, down, up, down! You can't predict the future, so you might as well buy right now. Unless you are investing a BIG lump sum, in 20 years from now, it won't matter whether you buy now at S&P 1300 or in 6 months at S&P 1100.

[aida2003]

I wonder how many people stopped their 401k contributions due to the current roller-coaster in the market.
Since we're accumulating, we made no changes from what we did last year. If it's going down, we're getting more shares. If it's up, we're getting less shares. --> Dollar Cost Average works OK for us.

[kork13]

At least for myself (21 year old with PLENTY of time to ride out the market, making about $900/mo), I'm still investing and saving for retirement exactly as I have been for the last 2 years... about $500/quarter goes to my investements, and just a few weeks ago I maxed out my 2008 Roth contribution (while the market is low). Currently, I'm just about 100% in stock MFs for both the Roth and regular investments.

I see this as a perfect time to invest, especially if you're primarily in MFs (greater security than individual stocks), because while the market is low, you can purchase a larger number of shares for the same amount of $$ you would pay when the market is up, then when it bounces back (whether that's in a few months or in a year or two), you'll have the benefit of having bought a load of shares when prices were low, and by then they'll be much more highly valued (e.g., high personal returns).

But again, that's just my opinion, and since I'm younger, I don't really have to worry a great deal about market volatility, nor do I plan on worrying about it too much until I'm at least 45, with less than 20 years until retirement. Until then, I'm going to be a solid believer in the benefit of dollar cost averaging.

[Broken Arrow]

I wonder how many people stopped their 401k contributions due to the current roller-coaster in the market.
Since we're accumulating, we made no changes from what we did last year. If it's going down, we're getting more shares. If it's up, we're getting less shares. --> Dollar Cost Average works OK for us.

Oh my goodness never! If the market is down, it only affect existing investments. Otherwise, a down market is the perfect time to buy buy buy! If one must stop somewhere, the best time NOT to buy is when the market is at its high, and when your NAVs are at their most expensive.... (Generally speaking anyway, because some asset classes are inverted.)

[disneysteve]

I wonder how many people stopped their 401k contributions due to the current roller-coaster in the market.

I don't know if anyone around here has stopped contributions, but I've seen quite a few comments saying they were waiting to open an account or invest until the market improved. Of course, that is totally wrong. The time to buy isn't after the market recovers. It is while the market is down.

[HNorton]

Do It NOW!