Visit the Morningstar.com, (Discuss link) and Vanguard for additional information. You can contribute $3000 for your year 2004 Roth IRA and $4000 for you year 2005 Roth IRA. (You have until April 15 2005 to contribute to your year 2004 Roth IRA.) Suggest you get one mutual fund like Vanguard's Total Stock Market Index (VTSMX) or their LifeStrategy Growth (VASGX). The former is an index fund that represents the entire stock market, the latter is a balance fund with an appox. 85/15 stock/bond mix. Even if you don't go with Vanguard, you should seriously consider a total stock market index or balance fund (and one with a low Expense Ratio.) Vanguard charges $10 annually on IRA accounts under $5000, so it makes sense to wait at least until you have $5000 in your first mutual fund before you consider a second fund.