Some Random IRA questions with Fidelity or Vanguard...

[Storm]

I want to start a roth ira before the tax deadline this April... Even though Im in my early 20s I suppose its never too early to start preparing for retirement.

Does anyone have an account with Fidelity or Vanguard? What do you think of their service?

I'm planning to call their respective retirement specialists for some information through the mail.

As for investment strategy... I'm hoping to go with no load index funds that have a low expense ratio. Basically because they seem easier to follow since Im a noob.

I know this forum is probably not the best place to ask but would concentrating my investments in index funds be a good idea? I'll probably start out with the Vanguard 500 Index Fund which is a large cap index fund? I guess I'll want to get a midcap, small cap, and possibly a foreign fund?

I've read up on some of the stuff from www.fool.com. Are there any respected sites like www.morningstar.com for fund reviews?

 

[Storm]

*bump*

 

[Blieb]

I have an account with Fidelity.

I've always found that their service is EXCELLENT. However, Fidelity's fees tend to be much greater than that of other brokerages. It's a trade off.

The Fidelity site has a great mutual fund search section. You can enter various criteria and locate funds that meet your goals.

Because you're young, you have to develop a strategy. You need to accept more risk now, because you don't need the money for 40 years. As you get closer to your retirement age and financial goals, your strategy changes form to lower risk.

 

[SUOrangeman]

After five years with Fidelity through my employer, I've got close to $140K total socked away for retirement in three accounts. Keep in mind that the last 5 years have been a real rollercoaster.

Since my involvement has come through the workplace route, I haven't been exposed to the same channels as anyone doing so on their own (transaction fees and various charges don't really come into play). Nonetheless, I've got no real reason to complain.

I too follow Fool.com's weekly e-mails. Index funds seem to be the wisest way to go. No matter what you buy, make sure to know what you are getting. I read once that 97% of all businesses in the US are considered "small." Yet, 90%+ of all money is ties to large-cap businesses. For better or for worse, small- and mid-cap funds, as well as value funds, have done well for me over the last 24 months or so.

-SUO

 

[Storm]

Anyone else have any comments or input?

 

[AlienCraft]

Originally posted by: Storm
Anyone else have any comments or input?

I have a diversified portfolio through ShareBuilder.com.
Works for me.