Help! My IRA is cratering.

I just opened the stupid thing a year ago and it's already worth less than I put in. Fucking recession.

Now is a great time to buy (or could be.) If you are under 50 I'd suggest you ride it out.

Time is on my side.

I'm 27 so I know that the market will pick back up....eventually.

a Roth IRA as a Bank CD to "balance" your other investment.

I recently retired from a bank.

I am scared to death to look at my 401k.

most of your funds should have been moved to more stable investments - CDs, T-bills, etc. I expect a banker to know that.

We've lost in the last two months everything we gained in the last five years. I'm afraid to even look now.

Our money manager assures us that everything will be better once Bush is out of office. He lays this squarely at the administration's feet. But in the meantime, he says to hold on, and we are, because if we took the money out now the IRS would hit us hard.

Just because it's in an IRA doesn't mean it has to be in the stock market. You can leave the money in the IRA and put it in stable value or bond funds. However right now probably is not a good time to do this, since you'd be locking in your losses. I figure with a portfolio of 100% stocks, a person should be prepared to see their holdings drop by 50% if the sh-t hits the fan. Bonds/cash holdings obviously help smooth out the dips (and peaks.) The problem on the flip side is that stable value funds carry inflation risk, and with the Fed cutting the rates again, these yields will drop fast. How much money you have in stocks, bonds, and cash should depend on your age (or the time horizon when you need the money) and your ability/need to take risk.

May want to get in touch with your fund manager.

Don't get absorbed in market cycles. In the long term, you'll be fine.

But it did start growing nicely in the 1990s. Patience!

ahead (but not forward) to working 'til I die.

I have had to hit it several times for money I will add. I did not necessarily contribute every month either. However, I did contribute at times.

Best of luck to you and consider CDs seriously. Right now, the economy is not so hot. Look around you and then judge for yourself. :)

The only reason the market didn't crash today is because people are snapping up "bargains"...

but thank god I was to lazy.

If you wanted to adjust your asset allocation to something more conservative (toward bonds and cash) then you should have done that back in October.

I see this as a time to buy, as I'm still in the accumulation phase with a good 40 years left to go before I need this money.

Then don't worry about it.

Buy socks not stocks.
Guess at one time THAT was also the American way.
thanks Bush.

learning more about the economy and markets in general.

Accumulation and distribution, big money moving into and out of stocks leaves a foot print.

:)