View Full Version : Underperforming Roth IRA


BOBBYBOB
I have approximately 5K in Dodge and Cox Stock Fund (dodgx) only getting
about 4%. If I roll it into another Roth can I avoid a tax penalty? Can
anyone recommend where to roll it? Thanks, I am a total novice.

Athena53
How long have you had this fund? DODGX has returned an average of 12%/year since inception (1998) although year-to-date it's returned only about 3%.

Interestingly, while it used to be in the top quarter of performers for similar funds, it fell into the 3rd quarter in 2006 and is in the 4th quarter YTD. So, if you've had it a short time it may look bad. This is a good fund (I'm putting a pretty big % of my 401(k) in it and I'd give it some time. But that's just my 2 cents. See disclaimer below. This is not professional advice!

Puck
I agree. DODGX is often considered the gold standard of solid, steady, long-term growth. The other thing to bear in mind is that once you're out of it, you can't get back in, as it's a closed fund. I'd think hard before switching.

cape cod Bob
Your year to date is 4% but over the past yr the return has been 12% and over the course of 3 and 5 and 10 yrs the fund has done well. I too would not be quick to leap out of a fund. You made a good choice initially so stick with it for awhile. Perhaps invest in other funds as well if you are trying to eek out a better return over the yrs to come.
But don't just jump out of funds and especially with this one.