Roth IRA

Class Notes

• Good Time to buy stocks:
• when economy is doing poor-share prices are low
• when a overall strong company has a temporary setback
• when others are fearful- others are selling
• asbestos in wall boards caused cancer: found out in 80's & 90's
• Americans sued the companies, companies lost money, share price dropped
• perfect time to invest in the company
• Bill Miller: one of greatest fund manager of all time
• had beaten S&P 500 15 times in a row
• Best way to predict success of actively managed funds
• the ones with the lowest expense ratios-costs
• bond index are useful because you can sell them at any time
• you can re-balance and sell bonds to buy into stocks

Further Research:

Project/Home Discussion:

      I am still unable to decide which type of fund to invest in because almost all the investment funds need a minimum of $1,000.  And because I actually want to start investing rather than simply pretending to, I need to find a investment fund that has a much lower minimum.  Preferably around $400.  If, however, I am unable to find one with such a low minimum,  I might have to borrow from the $10,000 that I will earn once I turn 18.  I have offered the idea to my parents that instead of earning the $10,00 when I turn 18, I will take out $1,000 now to invest in a stock index Roth IRA and then only receive $9,000 once I turn 18.  I have decided to invest in Vanguard Windsor II Fund because not only does it have the highest return but also because it is the same one my parents invest in.