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ING Direct - Mutal Funds or Roth IRA

edro

edro

Lifer
I see the Orange Investment account advertised in my ING Direct savings account.

I have about $1000 in my savings, and I don't plan on touching it for a while (and I continue to direct depost part of my check into it). Would it be wise of me to throw all that into an the Aggressive mutual fund they have?

 
And what's the deal with cashing in your Roth IRA? My main objective is to buy a house within the next 5 years, so should I just let the money stay in the Savings acct? Can I take the Roth IRA money out whenever I want? For property? For a house? For a car?

It says I can choose between:
Individual
Joint (Joint tenants with rights of survivorship)
Traditional IRA (Individual Retirement Account)
Roth IRA

Which one do I want if I plan on taking money out within 5-10 years?
 
Originally posted by: Nik
http://forums.anandtech.com/search.aspx

there's already a big thread on this
Click to expand...

What? There's a search button? Wow! Now if only I had some sort of psychic ability to know what string of words to search for... Oh wait, lemme try ING and IRA and/or Roth... Nope... that didn't work. Maybe I should create a thread to ask people and hopefully someone helpful will post the other thread's link...


I'd like to add... I am inquiring about INGDIRECT's RothIRA... not IRAs in general. If I don't like INGDirect for some reason, can I withdrawl or transfer the money to another Roth IRA company?
 
I opened up a savings account with ING and have a separate account for Roth IRA. I'm planning to buy a house this year so CD with ING is out of the question.
 
Originally posted by: Nik
:roll:

Search for "ING Direct" in the "all of these words" box and click just on OT.

Bingo.
Click to expand...

Arg... I already have an INGDirect Savings account... I am looking into INGDirect Mutual Funds and INGDirect Roth IRA!

If I am still blind... could you link the exact thread?
 
Man, I have no patience for mutual funds and IRAs yet. Opened a few Orange CDs and the popular Orange Savings.
 
Depending on how much money you have saved, you may not want to put it into any volatile investment. Especially if you are trying to buy a house with the money. Although mutual funds may be safer than buying individual stocks, unless you have a backup plan, I'd say just put it into something safer. But I would definitely recommend you open a Roth IRA for your retirement plan.
 
If i remember correctly you already have a 401k plan in place. Its not a good idea to have all of your money tied up into long term investments. The penalty for early withdrawl/close will greatly offset the interest earned in the accounts. Granted, you are able to withdrawl some of that money free of a penalty for a small number of reasons. Its should be used as a last resort.

If you are looking at buying a house, get into a qualified IRA. That way, you are able to withdrawl your money from the account for a qualified first home purchace or down payment. Qualified means following the IRS regs on IRA contributions for the Year. You could put that money in before april 15th, you may get a tax advantage for 2004, by lowering your taxable income. Then you can put it more money for tax advantages for 2005 at a later date.

Interest rates are on the rise for cd's. So you wont want to be tying much money up in them. Its probably better to leave it liquid in a savings account until you get at least 2.5k in there. Remember, getting a lower fixed rate of return on a small percentage of your money not always a bad thing, especially when you have 75% of your 401k in medium/high risk.

You dont want to loose everything you have, even at a young age.
 
Originally posted by: edro13
And what's the deal with cashing in your Roth IRA? My main objective is to buy a house within the next 5 years, so should I just let the money stay in the Savings acct? Can I take the Roth IRA money out whenever I want? For property? For a house? For a car?

It says I can choose between:
Individual
Joint (Joint tenants with rights of survivorship)
Traditional IRA (Individual Retirement Account)
Roth IRA

Which one do I want if I plan on taking money out within 5-10 years?
Click to expand...

Individual = you name a benificary. You die, the money skips probate and goes to that person.
Joint = you name someone else with you on the acct. you die, the money stays in the IRA and can be added to by the other person
Traditional IRA = you put in pre tax dollars
Roth IRA = you put in after tax dollars

All of them can be used for a qualified first time home purchace, down payment, your for medical expenses that exceed a certain precent of your adjusted income.
 
I wouldn't suggest you invest in their IRAs. Their expense ratio is too high. View their online prospectus @ http://home.ingdirect.com/products/mutualfunds.html on page 18 and see that their net expenses varies from a low of .93% to 1.75% For comparision Vanguard's Total Stock Market Index fund has an E.R of .19% There are plenty of other fund companies and funds that have much lower E.R. than ING. Their really isn't a good reason to be wedded to their IRAs just because you happne to have a savings account with them too.

You may withdraw your contributions to a ROTH IRA without penalty.
 
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