Investing for dummies question

[ijack]

Currently my Roth IRA shows almost $1k in a "FDIC Insured account."
Does this mean I screwed up somewhere and forgot to tell them where to allocate my deposits?

[gt7301b]

Sounds like some type of money market account instead of a mutual fund/individual stock.

[ijack]

It lists the investment type as "cash." What should I do with it? I don't want it there, I don't think.

[shaynaatl]

I'd say you definitely want that $1k in a stock fund, and not in a cash fund.

[ijack]

Huh, it looks like everything I contributed in December and the "income" that I've made from the account this year. Do they hold onto stuff for a certain amount of time? Or is it up to me to allocate deposits I make?

[njohnson1972]

It is up to you to allocate the funds. Is this account at a Bank? I am actually surprise that it is FDIC insured. Money Market funds aren't even insured, but cash deposits are.

[ijack]

It's in my fidelity account. It looks like I have it set up to automatically allocate my monthly deposits, but I made an extra deposit last month that I didn't allocate and I guess my income isn't allocated either. I just moved it all into my fidelity freedom fund. I think that was my first "trade"

[gt7301b]

You probably just transfered money into the account and didn't execute any other type of transaction. If you have other money in this account I would probably just buy more of that fund. When you go to execute the transaction it should let you use the cash for the transaction.