What should I do about my roth IRA with American Funds that is losing $400 a month?
September 28, 2009 by
Filed under american funds ira
Can I just withdraw it? There’s only a few thousand left.
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You can withdraw it or you can re-invest it in something else. If you withdraw it, there might be penalities and taxes depending on earnings in the account and how long the account has been opened
Jeez, what are you invested in that is losing 400 a month & you have only a few thousand in it?? You must have the worst American fund in the world.
I suggest you re-evaluate what you are invested in. If you cannot stand the market volatility, then move everything to money markets. I suspose American funds must have these??
It should not be loosing $400 a month during the past month but indeed IRA accounts have taken a severe beating these last 18 months or so, mine included. If you withdraw the money there will be no hope of ever recovering your loss. American Funds is one of the very best mutual fund companies. In general their funds have good track records and their expense ratios are very low. You did not mention which particular fund/funds you have your money in. Almost all of their funds have a positive 5 year return. The one notable exception is AMCAP and its 5 year return is only -1.4%. Not a lot of funds can say that. In fact not many funds can say that. The Vanguard 500 Index fund has a 5 year return of -1.9% and everyone raves about how wonderful that fund is. Every American Fund fund beats that return. Every one. Hang in there kid. OH!! One more thing. Keep contributing. It is a better time now than it was in the past.