Can I change My ROTH IRA???

[Guest Navyboy Leo]

Hello My name is Leo and I have a ROTH IRA with FIDELITY'S DESTINY I FUND. The ROTH fund hasn't been performing very well and I have had this fund now for about five years. This ROTH fund get's worse every year. Can I change from one Roth fund to another one? And if so how do I do this? Can Anyone recommend a very good ROTH fund for me to switch over to. Can anyone look at the fund that I am in and recommend if I should stick it out or stay in? I need all the help I can get please.

THANKS

Mr. Leo Bersamina:confused: :confused: :confused:

[papogi]

Yes, you can change the investment vehicle within your Roth IRA. If you do plan to do this, be sure to explain to the new custodian that you already have a Roth IRA, and that you wish to perform a direct custodian to custodian transfer of the entire amount. The new custodian will typically handle everything, once you have their required forms completed.

Fidelity's Destiny Fund invests in large cap growth companies. Even though it has lost over 16% over the past year, this is only slightly worse than the S&P 500 index. The fund is actually getting better, since its 3 and 5 year comparisons are a bit further off the S&P 500. Its expense ratio is a relatively low .37%.

Frankly, if this money is for a retirement which is more than 10 or 15 years away, this fund will be fine. It has gone down because the market on the whole has gone down. It's extremely difficult for fund managers to consistently beat the index which their funds are compared to. Almost everyone is losing some money. You're not alone.

With a down market, there are no places for you to put your money that have no risk of further loss, assuming you want the money in equities. Sure, you won't lose money in a money market fund, but there's no inflation protection, and your money won't be in the game when the tide turns.

When the market turns around, this fund will turn around. When the market goes up 10% for a year, this fund will be up around 10%.

[John G]

I agree with much of the above comments. You fund is down because the tide has gone out and all ships now are lower in the water. Fidelity is doing a fair job. Over a very long haul you should do fine with this fund. Perhaps when you put in the next lump you may want to try something a little different. Recently Value funds have done well, but it is a classic investor trap to belatedly switch to the winner only to watch it do nothing or go down. Talk to your Fidelity rep and look at the wide range of funds they have. You will see that the last three years have been just awful almost across the board. No one can tell you what fund will outperform in the coming year. It takes lots of patience to sit out a bad market swing, but I think that is your wisest tactic. When this market starts moving back up I suspect you will see very strong upward movement. (My personal guess is that this will start either in late summer... or more likely when we get past Sept 11 2002 - - but that is just one guys thoughts and I am as likely to be wrong as right - - and getting used to that keeps you from going stir crazy)