I'm a 24 year old with about $2000 to invest in a new Roth IRA. I am thinking of putting the first 1k in a blue chip like GE, and the other 1k in Boeing? I think Boeing looks like a great buy right now, but what does anyone else think? Or am I just being foolish by not putting my small $$ in a mutual fund?
Jay, that's pretty funny, 'cause I just turned 23 and am looking to open a Roth as well. I think that buying stocks in small amounts in the Roth is a good idea, actually, that is what I plan to do, but instead, to dump all $2,000 into one stock. I have looked at BA, GE, PEP, MO and others. To me at least, I'm too young to want a mutual fund. People I know have been using their Roths to trade, since there is no capital gains tax when you sell, its just that you cannot withdraw funds without a penalty. That's fine, but imagine if you bought $2,000 worth of Dell last year, you'd be sitting on a lot more than $2,000...Then you can sell it and put ALL the proceeds toward something else.
I've got my E*Trade Roth IRA application sitting right here, however, I want to call them to make sure that there really are NO account fees whatsoever other than the trading commission. I will likely pick up BA, but $1,000 spread across more than 1 equity doesn't appeal to me. I figure $2,000 in BA or something this year, then $2,000 in something else entirely next year. I don't want to buy any mutual funds until I'm about 27 or so, I already have 3, but in a taxable account.
The subject of the message is just the first sentance of your message. It's as simple as that.
best of luck,
geoff |
