Should I wait to open a Roth IRA and just keep my money in my savings

[J Mer]

account until the yield goes back up? I've been researching Roth IRAs for a little while now, and I'm noticing that right now, most of them are losing money (have negative yields). I'm getting 3% interest from my savings account right now, so should I wait to open the Roth (I was thinking about doing the Fidelity Simple Start or Freedom Funds (2050) so I can skip needing a minimum to open the account by setting up automatic contributions, and because I don't know much about investing to create a portfolio myself...), or am I mistaken about something?

I know the markets fluctuate and I'm young enough to recover, but I don't want to open the account when I know I'll instantly be losing money until the market goes back up. What's the point of opening a Roth IRA if a savings account increases my money more? I figure it might be better to just wait until it's doing better than the savings account...?

[everbling08]

Good answers here yes now is the time U.S. Housing R.E.I.T funds have high dividens and are considerably low now. I would recommend an ira in real estate when it booms you'll be one satisified chick. This is only a start but mix it up in about 5 to7 years.

[Nenya]

The deal with investing is you want to buy low and sell high. If you wait until the markets are back up you will be buying high.

I've done that when I rebalanced my account and felt awful to see it all go down, down, down, just after the moves.

A Roth is a great idea and, did you know, you can have any type of account you want in a Roth .... I believe even a money market. You can get some information by talking to a bank's investment advisor.

The big question to ask youself here is ... can you part with the money for a minimum of 5 years wihout having to pull some of the invested money out? Do you have a savings account to handle emergencies ... you know, the 3 - 6 month of expenses tucked away?

That should be your first priority, before investing.

[Ruby]

You seem to be a bit confused. You can open a Roth IRA using practically any investment vehicle. You can even open a Roth IRA savings account or CD at a bank it you want to.

The great thing about investing --even now in turbulent times--is dollar-cost averaging. Every month invest a set amount into your Fidelity fund, for example. Some months you will be able to buy more shares; some months you will be able to buy less--depending on the market. But at the long long end of the day when you are 59 1/2 or more, your stock market investment will be way higher than the bank investment.

You might as well hear this catchphrase now:

It's not timing the market that counts--it's time IN the market.

No one can predict the exact time when your investment will always be positive. Start investing now for the long haul and you will definitely win.

Good luck!