Should I contribute to my Roth Now when the SP took a dump

[Clocker]

I have and SP index fund and I am wondering whether i should contribute to my roth.

What are your thoughts.

If i contribute now will i be buying the fund cheap or is there more drops to come?

 

[FoBoT]

buy low

sell high


you figure it out




good luck!

 

[bennylong]

If we knew, we wouldn't be here. We would be sleeping with beautiful women.

 

[RaiderJ]

Mine is still dropping. I'm no market guru, but it almost seems like things are leveling out after a somewhat artificial high.

 

[SSSnail]

Both.

 

[iversonyin]

If you are in it for long term 10 years +. It doesn't matter WHAT the market does in short term. You make your regular contribution.

EDIT: If you are not comfortable taking that type of risk. Move some contribution into other asset class...such as bond funds/money market- something that is less risky.

 

[Clocker]

well i contribute a 4k a year on usaa sp500 index. but i was thinking maybe i should contribute at least 3000 this month and buy more stock. this is a long term investment for me. but like most people i would prefer to make more profit than less.

 

[iversonyin]

Originally posted by: Clocker
well i contribute a 4k a year on usaa sp500 index. but i was thinking maybe i should contribute at least 3000 this month and buy more stock. this is a long term investment for me. but like most people i would prefer to make more profit than less.

I would contribute as often and as much as you regular contribute ( as a % of your income- if you make $10k more next year- contribute accordingly).

What you are doing is what professional traders and some fund managers do- time the market.

Given that there's no big event going to happen this year (terrorist attack and such). The market should perform well according to history. - when Janurary is an up month (Janurary Barometer) and the year being 3rd year of the Presidential term, market generally had performed well.

If you are that bullish. Feel free to buy some more. But I wouldn't deviate from the plan you set out x years ago if I was you. (this is where everyone said "investing requires discipline")