Mutual fund losing money!?

everyone had been telling me to open a mutual fund since i cant get a 401k yet. im 20 and dont work full time yet. all its been doing is losing money. the housing and credit slumps are extremely hard. suggestions? pull money out and lose a few hundred or transfer or add more money in? its T Rowe Price's Retirement 2050 "TRRMX" THanks

Currently the market is adjusting hard downward due to the mortgage lending isses. You do have to sit tight and wait it out and as someone else said, you need to be in this for the long term. BUT! What I can tell you is that TRRMX is a very high risk domestic equity fund. Its only 2 years old and its performance is pathetic. If your in a 401K you should be able to move your monies to a different fund without penalty. Read your paperwork and see how it works for your plan. If you can move your monies without penalty, you may want to seriously consider doing so. Look for a low to medium risk fund that invests in either european or asian equitys and that has consistantly stayed ahead of the index. Use S&P or Morning Star to do your research. Your plan may suggest a group of funds you have to stick with, look each up and pick the one that best fits your needs.

When stock investing think LOOOOOOOOOOOOOOONG term. The market goes up and then down, and then up, and down.... If you are uncomfortable with having your mutual fund being "down" right now, you shouldn't be in the market. Stick with CDs and T-Bills.

Remember you are in it for the long haul... keep putting money in and maybe talk to your advisor about spreading some of it out. This is going to depend alot on the amount of money you have to play with. I would also suggest looking at a no-load or very low load index fund instead of an actively managed fund these funds tend to preform very well and do not have the cost associated with it like some of the other funds. Just google index fund for a list or go to fool.com for more free information

Good Luck and remember long term this is not a get rich quick thing this is a get rich when I'm older thing

You are in an excellent fund for the long term. Do not worry about it for the short term. The best approach is to invest a set amount every month (dollar cost averaging) and you will be purchasing shares both when the price is down and when it is up. Actually the best time to invest is when the market is bad if you have a long time before you need your money. So, unless you are going to need your money within the next 10 years or so, you are best advised to keep investing. When you get close to the time you will need your money, move it into something safer like bonds, money markets, CDs, etc. Good luck.

Hi,

Yes, long term, when investing in a mutual fund-- think 10 years. Now, as for your choice and whether it is the best long term fund for you, ask questions on sites dedicated to investments. One is www.moneyrec.com
- lots of reviews on mutual funds and the users are serious- you could get good input. Free and Spam free.
Great site. Also, morningstar.com-- free board to post- pay for other info.
Good luck and don't make any hasty decisions. Ask around, first.
Regards

Bunny