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Subject:  Re: How do I effectively use a Roth IRA Date:  12/14/1999  12:13 PM
Author:  Blueyale Number:  21813 of 308883

Well I'm also young (just turned 21 last month) and the way to go is a 100% equities allocation for someone for our age. I don't know what more to add to except that you want to start early and contribute as much as often to max out tax deferred accounts and then to a PA account. The name of the game is compounding and starting early will compensate for not having too much in the beginning or making some mistakes. That's the advanatage that youth provides IMHO.

It's easy to say that you're immune to risk but you have to know how'd you react if your portfolio lost more than half its value in one day. Once you have a good idea of whether you would have control over your emotions, then focus on picking some quality growth stocks. Investing in quality is a must and you shouldn't neccesarily chase after risk. Risk and reward are joined at the hip and but you don't want too much risk for little reward. Coming up with the right ratio is the key to investing well. Risk just comes with the territory if you're focusing on certain sectors like tech, the internet, or B2B stocks.

Just of curiosity, do invest in any real estate? I've been trying to read up and learn on the subject but not that many people here seem to be interested in talking about that kind of stuff (except the guys on the REIT board).
