Who do you have a Roth IRA account with?

[Mr Pickles]

Do you like them? pros? cons?

 

[dud]

T. Rowe Price

They have the BEST retirement (target) funds on the planet.

Depending upon your age go with either the 2020, 2025, 2030 or 2040 retirement fund. You just put the money in and relax. I sleep well at night BTW.

 

[Mr Pickles]

Its not my only investment, but I figured I would hop in it early (22) and see what it can do. At my age I'm willing to go with a more aggressive approach and then switch to something a little more modest when I get older, way older.

Thanks for the advice.

 

[misle]

How does all this IRA stuff work? I have about $5k from my previous job that I can roll into an IRA, but I don't have a clue how to start.

 

[blipblop]

Currently 21 years old and I have my ROTH IRA with Vanguard. I have a mix of small cap, emerging markets, and their index 500.

 

[Golgatha]

Originally posted by: misle
How does all this IRA stuff work? I have about $5k from my previous job that I can roll into an IRA, but I don't have a clue how to start.

I think you'll need to fill out paperwork to convert your 401k or 403b into a rollover IRA account and then convert that to an IRA or Roth IRA.

 

[blipblop]

yes, start as early as you can because with the ROTH, you are making after tax contributions. Say you invest 10k now and it grows to 1 million when you retire. At the age of 59.5, you can take that full 1 million, no taxes has to be paid. How great is that?

 

[Mr Pickles]

Originally posted by: blipblop
yes, start as early as you can because with the ROTH, you are making after tax contributions. Say you invest 10k now and it grows to 1 million when you retire. At the age of 59.5, you can take that full 1 million, no taxes has to be paid. How great is that?

For the record, laws prohibit contributing that much money in a year.

Any person who currently has earned income is eligible to open and maintain a Roth IRA account.


The Roth IRA holder can make a contribution to their Roth IRA for the amount of earned income they have per year up to a maximum of $4,000 or $5,000, depending on their age.

Under 50 years of age, you may contribute up to $4,000 per year.

Between 50 and 70 1/2, you may contribute up to $5,000 per year.

If an individual's modified adjusted gross income is between $95,000 and $110,000, the allowable contribution amount is less, and is subject to certain adjustments.

Please contact your tax advisor to determine what amount you are eligible for.

If a ROTH IRA holder is married and filing a joint tax return and the combined modified adjusted gross income is between $150,000 and $160,000, the allowable contribution amount is less, and is subject to certain adjustments.

Please contact your tax advisor to determine what amount you are eligible for.

But other then that, blip is right on the money (pun!)

 

[Legend]

Vanguard. Like them because it's got a lot of good index funds so that you avoid management fees (don't need them for Modern Portfolio Theory), but they have restrictions on many of them. Like closed funds or ones that need an initial 10k investment.

 

[vi edit]

Roth is with Vanguard for mutual funds
Traditional IRA(from a rollover) is with TD Ameritrade

I use the Roth as a "set and forget" vehicle and the AMTD account is for a more actively managed and higher gain portfolio.

 

[Mr Pickles]

I trade with Scottrade. Anyone see anything wrong with using them for my Roth IRA?

 

[blipblop]

Hah! yea I was just saying, I knew the limits, but thanks for clarifying. I'm not sure how the IRA accounts are set up at the brokers. I'm sure that is is ok as long as they let you purchase the funds necessary.

At Scottrade, they let you purchase funds, but you will have a minimum contribution correct? Someone more familiar with this could help you.

 

[vi edit]

The only real advantage to doing mutual funds at a broker is that you have more funds available. You can buy from many different fund providers through a broker that you don't have access to at a single provider like Vanguard.

But, the downfall is that you pay a lot more for that too. You could be looking at anywhere from $10-$50(if not more) to buy in to the fund. If you just wanted to buy into a Vanguard fund, you could do it free at Vanguard.

 

[bennylong]

I have my Roth IRA with Vanguard because of the low fee and I won't do much trading with only $4k. I pay only $10 a year for fee, since I have less than $5k(not counting the investment fee for the funds).

How much do you have with Scotttrade? Those fees can add up to a lot even if it's $7.99 a trade. Better to stick to a low cost fund company like TROWE Price or Vanguard if you don't have much money.

 

[bennylong]

Originally posted by: vi_edit
Roth is with Vanguard for mutual funds
Traditional IRA(from a rollover) is with TD Ameritrade

I use the Roth as a "set and forget" vehicle and the AMTD account is for a more actively managed and higher gain portfolio.

I have the same setup. I have my Roth at Vanguard where it just sits and I never do any trading.

My Traditional IRA is at Ameritrade where I trade almost every day. I would have done better if I have just sit on my Microsoft stock or ATVI instead of trading in and out! But I do it mostly for some excitement

 

[Mr Pickles]

I see some people saying they use a ROTH as a "set and forget" and others seem to be switching funds constantly - seems to be both sides of the spectrum. I just want to make sure that if I do choose to set and forget years later I'm out of cash.

 

[bennylong]

Originally posted by: MrLee
I see some people saying they use a ROTH as a "set and forget" and others seem to be switching funds constantly - seems to be both sides of the spectrum. I just want to make sure that if I do choose to set and forget years later I'm out of cash.

Better to stock to an index fund and sit and forget. Historically, index funds like S&P500 have returned over 10%. I knew a lot of people that bailed out of the S&P500 index after it lost 40% in one year, I just kept putting in more money. Look at it now.

Chasing the "hot " funds like Emerging Market where they have returned over 60% a year is a money loser. Don't forget the internet bubble.

 

[shadow9d9]

Roth IRA since I was 21... invest it myself.. of course, that is what I do for a living... account is with Fidelity.

 

[thirtythree]

Originally posted by: blipblop
Currently 21 years old and I have my ROTH IRA with Vanguard. I have a mix of small cap, emerging markets, and their index 500.

How much money do you have in there? Don't you have to pay $10/yr for each fund under 5k and each index fund under 10k?

 

[thirtythree]

Originally posted by: MrLee
I see some people saying they use a ROTH as a "set and forget" and others seem to be switching funds constantly - seems to be both sides of the spectrum. I just want to make sure that if I do choose to set and forget years later I'm out of cash.

You could try Vanguard's target retirement funds (VTIVX for you). EDIT: Holdings for VTIVX

 

[Mr Pickles]

Originally posted by: thirtythree

Originally posted by: MrLee
I see some people saying they use a ROTH as a "set and forget" and others seem to be switching funds constantly - seems to be both sides of the spectrum. I just want to make sure that if I do choose to set and forget years later I'm out of cash.

You could try Vanguard's target retirement funds (VTIVX for you). EDIT: Holdings for VTIVX

Either that or I was looking at an interesting article this morning regarding Vanguards Total Market Index Fund (VTSMX). Link to article. Actually its not so much an intersting article. I was skimming through some editor's choice articles and found it mentioned.

Overall, i think i'm going to spend a week or so researching all of my options. All I know now is that I have enough cash that the initial minimum investment doesn't bother me and "set and forget" sounds great haha.

 

[thirtythree]

Originally posted by: MrLee

Originally posted by: thirtythree

Originally posted by: MrLee
I see some people saying they use a ROTH as a "set and forget" and others seem to be switching funds constantly - seems to be both sides of the spectrum. I just want to make sure that if I do choose to set and forget years later I'm out of cash.

You could try Vanguard's target retirement funds (VTIVX for you). EDIT: Holdings for VTIVX

Either that or I was looking at an interesting article this morning regarding Vanguards Total Market Index Fund (VTSMX). Link to article. Actually its not so much an intersting article. I was skimming through some editor's choice articles and found it mentioned.

Overall, i think i'm going to spend a week or so researching all of my options. All I know now is that I have enough cash that the initial minimum investment doesn't bother me and "set and forget" sounds great haha.

72% of VTIVX is in the Total Market Index Fund. VTIVX is just a little more diversified, and it isn't an index fund, so you only need 5k to avoid fees. Comparison since inception of VTIVX. VTIVX also becomes more conservative as you near retirement. The minimum fees will apply to you because you can only invest 4k per year.

 

[Descartes]

I don't qualify for a Roth IRA, but I have a SEP IRA that I have with a private firm. Some of the funds in the IRA are with Fidelity, T Rowe, Vanguard, Eaton Vance, etc.

 

[Boogak]

I've got a Roth IRA with Fidelity and a standard IRA I rolled over from an old 401k with Vanguard. Both are in their respective Target Retirement 2035 Funds. It's pretty simple set it and forget it, it starts off aggressive and they start getting more conservative as your target retirement date approaches. Saves you the work of doing it yourself and no fees for either!

 

[snoopdoug1]

Originally posted by: Descartes
I don't qualify for a Roth IRA, but I have a SEP IRA that I have with a private firm. Some of the funds in the IRA are with Fidelity, T Rowe, Vanguard, Eaton Vance, etc.

too rich?