Finance advice (taxes, roth etc.)

[Jassi]

So, I'm about to file for taxes independently for the first time in my life and the only thing holding me back is retirement savings. My company doesn't offer a 401k plan (forget matching of any sort - I know it sucks but I made my choice when I took the job) so I'm looking at a Roth IRA. Ideally, I'd like to keep it simple by opening a high yeild savings account and an IRA account with one company. E*Trade offers a good interest rate for savings and they offer Roth IRA savings plans. Here is where I'm getting the jitters. As a company, their stock has tanked recently (dunno why, not smart enough to figure it out on my own). I'm planning on putting my max allowable contribution for 2007 ($4k) which is nice chunk of my current savings (and something I probably won't see for about 26 years).

My questions:

1 - What happens to my Roth account if E*Trade bites it?
2 - Savings account through them is FDIC insured but what risks do I take with Roth IRAs if I go with a company over one of mega-banks?
3 - Can I roll over my Roth account to another company later in life?


Any general relevant advice related to Roth IRA will be very much appreciated. Investing advice too!

Thanks!
- jassi

 

[Special K]

For investing advice, go here:

diehards

Personally, I would go with Vanguard for a retirement account, but they aren't the only good choice out there.

 

[thirtythree]

Originally posted by: Special K
For investing advice, go here:

diehards

Personally, I would go with Vanguard for a retirement account, but they aren't the only good choice out there.

I wouldn't go with Vanguard if you ever want to get into trading stocks -- fees are way too expensive unless you have a fortune with them. I'm pretty sure you can roll over your Roth IRA when you want to. At least, the brokerage sites I've looked at allow you to. Seems like kind of a pain to me though.

EDIT: Insured up to $500,000? Just skimmed the article so I'd actually read it...

 

[Special K]

Originally posted by: thirtythree

Originally posted by: Special K
For investing advice, go here:

diehards

Personally, I would go with Vanguard for a retirement account, but they aren't the only good choice out there.

I wouldn't go with Vanguard if you ever want to get into trading stocks -- fees are way too expensive unless you have a fortune with them. I'm pretty sure you can roll over your Roth IRA when you want to. At least, the brokerage sites I've looked at allow you to. Seems like kind of a pain to me though.

EDIT: Insured up to $500,000? Just skimmed the article so I'd actually read it...

Why would you use a Roth IRA to trade stocks? I was speaking of long-term investment accounts - i.e. buy and hold.

You could always have your retirement account at one institution, and have another brokerage account somewhere else that offers better terms for individual stock trades.

 

[DaveSimmons]

There is a stocks equivalent of the FDIC so it would be safe.

Vanguard.com is a better choice to buy and hold mutual funds until retirement, which is what I'd recommend doing for a retirement account.

They have Target (year) funds that include a full set of (very good) US and foreign stock index funds so you're instantly diversified. Pick the highest year they have to invest a little more aggressively (less money in bonds).

 

[grohl]

:thumbsup:

Originally posted by: DaveSimmons
There is a stocks equivalent of the FDIC so it would be safe.

Vanguard.com is a better choice to buy and hold mutual funds until retirement, which is what I'd recommend doing for a retirement account.

They have Target (year) funds that include a full set of (very good) US and foreign stock index funds so you're instantly diversified. Pick the highest year they have to invest a little more aggressively (less money in bonds).

 

[thirtythree]

Originally posted by: Special K

Originally posted by: thirtythree

Originally posted by: Special K
For investing advice, go here:

diehards

Personally, I would go with Vanguard for a retirement account, but they aren't the only good choice out there.

I wouldn't go with Vanguard if you ever want to get into trading stocks -- fees are way too expensive unless you have a fortune with them. I'm pretty sure you can roll over your Roth IRA when you want to. At least, the brokerage sites I've looked at allow you to. Seems like kind of a pain to me though.

EDIT: Insured up to $500,000? Just skimmed the article so I'd actually read it...

Why would you use a Roth IRA to trade stocks?

For the tax benefits, obviously. You could only invest a portion of your portfolio in stocks or other brokerage investments -- ETFs, bonds, CDs, non-Vanguard mutual funds...