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Roth IRA info please

B

bookem dano

Senior member
I'm thinking that it would be good to start a roth ira in addition to my 10% in my 401k. I just don't know that much about investing in general(at least the execution of investing) and need some help figureing out where to open it and anything that is good to know.

I know that the contributions are post tax while 401 is pretax and that roth earnings are not taxed at distribution. But that is almost the extent of my knowledge. And that you can only put in 4000/year

Any help would be great.

thanks.
 
You can withdraw contributions to a Roth without penalty. You are only penalized for withdrawing earnings before 59 1/2.

You can open a Roth pretty much anywhere. I have a Roth at Vanguard.

Does your employer have a match for the 401k? If not, max out the Roth first before contributing to the 401k. If they do match, contribute to the point where you get the full match, then max out your Roth, then contribute more to the 401k.
 
You have until 17 April 2006 to invest $4000 in your 2005 Roth IRA. Do last years first if you can't afford $8000 right now. Vist the Vanguard Diehard's forum on Morningstar.com for information including recommended reading and asset allocation. You should probably consider only one fund right now (avoid nuisance/low balance fees) like V. Total Market Index (VTSMX), a balance fund like STAR (VGSTX), or a Life-Cycle fund like (VASGX). Or get a similar fund at T.Rowe Price. Both Vanguard and T.Rowe Price are great No-load mutual fund families.

What investments are available in your 401k? Consider increasing > 10%. Noone has ever said, " I retired with too much money."
 
No requirement to take distributions at age 70 1/2, you can take early distributions without penalty under certain circumstances.
You're investing for the long run, so invest accordingly.
 
well...I've been saving basically 20%....10% into my 401K(+8% total company match), the other 20 in a money market that is at just over 4% now. I like to keep some liquid assets so now I figure I have enough to max out a Roth. I'd rather try some percentage of pre/post tax savings that way come retirement I have some combination of the two. I'm just new to the idea of having to find things with the low fees since most of my investing has been in the 401k.

My 401k just went to MassMutual.
Here's the tickers that I can invest in.
PTRAX
MFUYX
MIEYX
MCAYX
RGAEX
MMVYX
WFMDX
MEFYX
MSCYX
RERCX
mrfyx



My old stuff
FUSEX
RGACX
FAEGX
RYTCX
LAVLX
BGRFX
FMCAX
RERCX

I was fairly happy with my old funds as they had a 13% annualized ROI and 34.8% for the last 3 years. That's if ms money is telling me the truth.

The new fund has a lifetime fund so I put some of my converted funds into it. The lifetime fund is composed of all mass mutual funds which I have no direct access to. So I figured I'd put some cash in the lifetime fund and see how that does compared to my other funds before I start adding to it on a regular basis.

I also took their aggressive model, and made it more aggressive. Many of the funds are new, so I had to wing it a bit, but here's my allotment per paycheck
5% Sel Fundmentl Val (Wellington)
5% Sel Indexd Eqty (Northrn Trst)
15% Growth Fund of America
5% Premier Cap Appreciation (OFI)
15% Sel SmCoVl(Clover/TRP/EARNEST)
5% Adv Mid Cap Disc (WellsFargo)
25% Sel SmCapGrthEq (W&R/Wllngtn)
10% Sel Mid Cap Growth II (TRP)
15% EuroPacific Growth (American)
 
can you open and put in money into a Traditional IRA if you already have a Roth IRA open and made the max contribution?
 
NYX is supposed to be a monster. Analysts are saying that this will be the big dog, but all exchange shares will rise in the coming years, smaller exchanges will be swallowed whole by larger players.
 
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