Equity Income at Trowprice? good or bad for retirement?

[savingdealz]

Hello,

I am 27 years old. I am investing in Roth at TROWPRICE. Right now, I am choosing Equity Income. Do you think this fund is good for retirement? When should I stop to invest in this fund? I work part time. I can only invest 150$ a month. Anyone gives me suggestion please ? I am very new to this investing.

[disneysteve]

At age 27, I would generally say that you should be more concerned with growth than with income. This fund's objective "is to provide substantial dividend income" as well as some appreciation. What you need at your age, though, is long term growth, not current income.

[savingdealz]

thanks!
Long term growth? What do you mean this? What is the difference between these? would you suggest some for me in Trowprice please? I am very new to this. Thank you so much for your help!

[fruitbowlk]

You can always call Troweprice and talk to on of there rep and they will go through everything with you.

[savingdealz]

I am afraid they will charge me fee for this hic hic hic.

[Broken Arrow]

Long term growth? What do you mean this? What is the difference between these?

Growth generally means, well... growth in the value of each NAV or share. So, if you bought something for $10 per share, you're hoping that it will turn into $20 per share.

Income generally means that you want it to generate income instead.... So, it doesn't matter if what you've bought stays at $10 per share, so long as it generates, say, 7% interest.

The former tends to be more volatile and aggressive. The latter tends to be less.

I am afraid they will charge me fee for this hic hic hic.

Unless the funds have loads (or sales charges for buying and selling the funds), you should be able to change it.