Posted: 2/14/2005 5:01:05 AM EDT
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Alright guys, I have a few investment questions for those of with experience in this area. I have been doing contract work since I graduated college last year. My jobs don't offer any benefits, so I am looking to invest on my own for retirement. I keep looking at Roth IRAs and the like. My question is this, is the Roth IRA the best bet in the long run? I am not looking for quick cash, I can invest this amount for a long time. I have a buddy that is into i bonds and claims they are really good too. What is the best place to get an IRA? The bank or through an investment broker? Should I be looking at Mutual funds too? I don't have much experience with this stuff and am just looking for advice right now. |
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talk to several investment specialists go with the one you feel most comfortable with I prefer someone who is young and still "working" After you decide on an advisor, they should contact you a couple times a year (at least) either with inormation that will benefit you or ask you how things are going. The advisor should not mind suggesting investment strategies that include products that don't directly benefit him. They should keep you up to date on new laws that affect your investing or that have tax consequences. Basically find an advisor that is working for YOU not trying to fit you into a category of investor. putting money in several accounts (ira, mutual funds, savings) so that you have access to cash if needed (without a penalty). |
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You need to do some research on Roth IRAs. The benefit is that the IRA grows tax-deferred, which means you don't have to pay taxes every year on income from the investment. Instead, you pay the taxes when you take the money out. You can invest in bonds or mutual funds in your Roth IRA. What you need is an IRA custodian - a firm that manages the IRA for you. A brokerage house will do it as will a bank. I've got mine through a financial planner that did some work for us. The main thing you're looking for is low fees for administering the IRA. One thing you've got to look out for (as pointed out in the prior post) is an IRA custodian who steers you into certain investments aolely because he gets a higher commission for selling those investments. Here's Yahoo's information pages on Roth IRAs - you should probably start there: Link to Roth IRA info Good luck. |
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I have a ROTH IRA through Fidelity (fidelityinvestments.com). It didn't cost me anything to set up or to buy mutual funds. It's been good for me so far. catch |