Quote:
Originally Posted by disneysteve
Are you talking just about mutual funds? I certainly wouldn't advise following that plan with individual stocks as you may be pouring money into a bottomless pit. Even with mutual funds, there have been funds that have folded over the years so you still need to have some caution and make sure the NAV isn't dropping for some reason that would make you want to get out.
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Steve- remember this started with me asking a question if you invested $5000 and the market turned into $2500...
I like to use dollar amounts, because my experience suggests that people weak at math do not fully comprehend percentages.
If I worded question, you invest money and it loses 50% does not have same impact. $5000 was chosen because it is amount of IRA, so a newbie reading the questionaire at some point will be advised to open an IRA with $5000, and the goal is to make sure they stay the course through the first 12-13 months of their plan.