Should I Max My Roth IRA Right Now?

Today’s post will answer the question: Should I Max My Roth IRA Right Now? The Coronavirus is the main topic in the news everyday and the fear among people is growing. This question comes from a redditor that wants to know what other peoples advice on what to do during this time. If you have a Roth IRA and are wondering the same thing then keep reading. Send this to a friend that could find this information useful.

Should I Max My Roth IRA Right Now?

Redditor anonymouspsy asked the question:

I’m 23 and finishing college soon, I’ve been wanting to max my Roth before the 2019 contribution deadline.

I’m just now opening a Roth, and I’m wanting to put the $6,000 into VTSAX.

Due to Coronavirus, I noticed the price has dropped from $83 to $58 in a month.

Does that mean if I would have put the $6,000 into VTSAX a month ago, I would have had fewer shares and since it’ll rise again in due time I would have made less ROI?

Is now a great time to put $6,000 into my Roth or should I wait some days for the price per share to continue to drop?

Below is answers from what other redditors have to say.

Does that mean if I would have put the $6,000 into VTSAX a month ago, I would have had fewer shares and since it’ll rise again in due time I would have made less ROI?

Answer: Yes.

Is now a great time to put $6,000 into my Roth or should I wait some days for the price per share to continue to drop?

Answer: Now is a great time. It might drop more, it might not. Don’t contribute anything you care about for the next 5-10 years and it doesn’t really matter. Attempting to chase the bottom of the market will, on average, burn you more than help you. All you know is it’s much better to buy now than last month.

I agree with the response from penguinise. The Dow Jones is currently at 19,898.92 and If you are wondering about when to invest then the time is now. The stock market hasn’t been this low since 2016. While this is a crazy time with everyone panicking over the coronavirus and stockpiling food, This is also an opportunity to for you to make some long term gains in the stock market.

Here’s what another person had to say about maxing out the Roth IRA.

WARNING BEFORE YOU INVEST:

You say you are still in college. You can only invest taxable income from 2019. So if you are a full-time student with no job, you can not invest in a Roth IRA. Or, if you have a part time job and only made $2000, you can only invest that much in a Roth ira.

Some of you might have already thought about how this person could invest in a Roth IRA while only in college. If you do not have a job then you cannot open an Roth IRA. This is because you only are allowed to invest money that has already been taxed.

If you do have a job then making contributions or maxing out your Roth IRA might be something to do while the markets are low.

I hope that this post answered the question about Roth IRA’s during this time right now. Make sure that you’re staying safe out there and not to overly panic. If you have lost your job temporarily then it is a must that you budget your money by using apps like Mint or recording it yourself.