StageLeft
No Lifer
- Sep 29, 2000
- 70,150
- 5
- 0
Best financial advice in the world: Do not carry credit card debt month to month.
Second best: The earlier you can start saving/investing money the better.
Third best: Don't think that you can beat the market or an index fund by playing around with individual stocks. You're wasting time and, more importantly, wasting money. The numbers aren't with you.
Second best: The earlier you can start saving/investing money the better.
Third best: Don't think that you can beat the market or an index fund by playing around with individual stocks. You're wasting time and, more importantly, wasting money. The numbers aren't with you.
what? eighteen and no roth yet?
i started one for my kids as soon as they were old enough to earn any money..
the item of value that you have is time.....you can not replace it as you get older..
if you place money in a roth now, by the time your 65 you should have a considerable sum of money
the power of the roth is the tax defered nature of its growth.
try to put the maximum in each year....
get growth oriented stocks (or mutual fund)
i started one for my kids as soon as they were old enough to earn any money..
the item of value that you have is time.....you can not replace it as you get older..
if you place money in a roth now, by the time your 65 you should have a considerable sum of money
the power of the roth is the tax defered nature of its growth.
try to put the maximum in each year....
get growth oriented stocks (or mutual fund)
Yep, compound interest is your friend.
Play with this investment calculator and see what starting early can do for you.
well, hopefully medicine will advance to the point where your age 45 years from now won't be considered that old. Then you can save longer and make more $$$.
Why invest in an IRA? Four words, my friend: tax free compound interest. You'd have to be severely lacking in mathematical ability to not see the value of it.
This is a myth. Yes the numbers are with you. But such a method is neither suited nor recommended for beginners or investors who give their portfolios little attention and fail to reinvest their dividends. Purchase established companies having solid balance sheets with market share. Monitor the portfolio at least weekly. Reinvest dividends and reinvest proceeds resulting from takeovers/mergers.
For comparison,(see notes):
Issue----Total Cumulative Return, 10 years
VFINX-----125% (Vanguard 500 Index Fund)
-------------------
WEN--104%
PFE----246%
BOBE----70%
EMCI---202%
NCC----269%
RBNC---591%
ASRV--(-40%)
LMT------207%
SKYF-----172%
1. All issues listed above purchased between May 1993 - Feb 1996 and held in DRIP accounts via book entry.
2. PFE originally purchased as UPJ. Merged to PHA, merged to PFE
3. RBNC originally purchased as CFB, sale of CFB reinvested as DNFC, merged with RBNC
4. ASRV and SKYF originally purchased as UBAN.
5. LMT originally purchased as Comsat Corporation
6. This section does not include KEI. Originally purchased between May 1994-June 1996. Sold Aug of 2000 after 1923% gain.
7. Issues held more than 10 years not included in comparison.
8. Total weighted (for amount invested), cummulative return = 198%
this thread makes me want to start an IRA now. i'm turning 23. Is the "annual rate of return" the same no matter who sets up your ROTH IRA?
GTaudiophile
Lifer
- Oct 24, 2000
- 29,767
- 33
- 81
By no means.
A RothIRA is like a type of account. What makes up that account is up to you and differs from person to person. I have several RothIRA accounts. Some comprised of mutual funds, some of stocks. Each reacts and grows differently, but that is the point. Again, be diversified!
ok, there's something fundamental I don't get about roth IRAs. I thought it was like a saving's account which you can't withdraw from until you're really. In exchange you get a good interest rate. Can someone explain it to me?
I did some research, but I still didn't get a straight answer.
Just curious... why do you need multiple IRA accounts? Is there a reason you don't just put the mutual funds and stocks in one account?
and about the compund interest....what?? Stocks and mutual funds don't earn interest, they go up or down based on stock value and earning dividends. Those aren't the only two things you can have in an ira acount, but that's what most people would have, especially if they were younger and wanted the best long term return.
I was assuming frito's original question was about starting a rothIRA vs regular IRA. The advantages of a rothIRA to a regular is tax free earnings. You pay taxes on what you put in and don't have to pay taxes when you take it out. You never pay taxes on any earnings you make. A regular IRA is the opposite, no taxes when you put it in but everything gets taxed when you take it out.
First rule of investing...don't put it into your place of employment.
1) your company goes out of business or has a rough year and cuts back labor costs - not only do you lose your job, but you also lose any value you had in your portfolio.
So, as a full time student looking to start an IRA, would I want to open a Roth IRA or a traditional IRA?
And would I want to do this at my bank (Citibank) or with my employer?
(BTW, the fool.com calculator said I would have more money at retirement if I did a traditional, deductible IRA)
And would I want to do this at my bank (Citibank) or with my employer?
(BTW, the fool.com calculator said I would have more money at retirement if I did a traditional, deductible IRA)
start with Roth IRA, when you get older and make more money you will not be able to contribute to the Roth IRA, it has an income ceiling. It's basically best to contribute to Roth IRA until you can't and then go to traditional, unless you need the tax breaks of traditional now. Also with Roth IRA, you can also contribute to a 401K plan with your company, which will help you diversify your type of retirement savings accounts. It's good to diversify and have both, but since you can only contribute to Roth for a limited period, do it to the max while you can.
Ok, one more question. So I decided to start a Roth IRA with citibank. am I able to make contributions (up to the limit) at any time I want during the year?
Yes, you can spread it out over 12 months, paid it in one big cheque or anything in between, as long as the total contribution doesn't exceed $3000 for that year.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes + WCL Discussion Threads
- Started by Tigerick
- Replies: 24K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
-
Facebook
Twitter