Investing: How to allocate my assets within a Roth IRA?

[TJN23]

More specifically, I'm talking about Roth IRAs, Stocks, and Mutual Funds.

Hopefully when I get a full-time job next year and start coming into some money, I'd like to invest more than I have been.

I have a Roth IRA from Ameritrade with trading on margin DISABLED. However, you can allocate your Roth IRA assets between cash, stocks, and mutual funds. I already have a little bit of a nest in a separate mutual fund exclusive from the IRA, and would like to open up an eTrade account for stocks once I make some money.

My question is this: is it smart to diversify your assets within a Roth IRA?
Or rather is it better to leave it as cash and worry about trying to make the full contribution every year?

TIA

Tim

 

[FeathersMcGraw]

It's smart to diversify your assets no matter where they are.

Since the primary purpose of a Roth IRA is accumulate wealth for retirement tax-free, I can't see why anyone young in the stages of setting one up would have any significant allocation to cash. You want growth, not the piddly interest the current market lows would give you.

 

[TJN23]

Growth is good - does anyone want to be my personal investor? :beer: