Posted: 1/12/2013 7:59:31 PM EDT
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Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway).
Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? |
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You can set it up online and manage it yourself. If you do that your best bet is to buy mutual funds. You should focus on index funds that mirror market activity or look for target retirement funds with your estimated date of retirement.
Pretty much autopilot investing. You can deposit directly out of your paycheck and let it go. The absolute worst thing you can do is try to buy individual stocks on your own. |
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Your crazy as hell asking that in here !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway). Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? |
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Well, does your employer have a 401k plan? if so, at least try and put $$ in to get your employer's matching $$. Many employers will match say the first couple of % that you input.
If you are looking for Roth IRA info, I like Vanguard Mutual Fund Co. They have a solid long reputation with good low expense ratios. I don't believe any of their mutual funds have front end load fees either which is good. Edit: Many credit union/bank ROTH IRA don't have very many mutual fund options to choose from. You are better off researching companies like Vanguard, Charles Schwab, T. Rowe Price etc... |
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Go to any brokerage, someone mention Scottrade, they will work. They will give you paperwork and set up an account. You have until 4/15/13 to contribute up to around at most $5000 (or whatever it is now) into an investment you choose. That's your contribution for tax year 2012. The you can contribute up to the max for tax year 2013. Traditional IRA will cut any contribution you make now out of your gross tax income. I.e., the more you give into your IRA the more it cuts into your taxable income and thus the less you have to pay that year. When you cash out in the future, assuming you don't prematurely and induce penalties, you get taxed at the tax rate then. Roth IRA you pay you taxes now, not when you cash out. Cash out early you get penalties of around 10% of total balance. |
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Vanguard
Be careful of some brokerage companies because of additional fees/expenses related to investing in mutual funds. Many mutual fund specific companies like Vanguard, T. Rowe Price, Charles Schwab allow you to invest in their mutual funds with a minimum amount of initial investment ($1000 - $3000) to open the account and they have low expense ratios for each fund. |
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Vanguard, Janus, any big brokerage house. Go with a simple estimated time to retirement mutual fund. Don't over think it! $500 a month in a Roth for next 20 yrs and you'll retire a MULTImillionaire you can't put $500 into a roth every month. You almost can, though. The limit for 2013 is $5,500 per year, which is about $458 a month. |
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Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway). Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? open a no-cost IRA at one of the "big three": Fidelity, Vanguard, or T.Rowe Price. at any of these three companies you will find the largest selection of potential investment vehicles (incl. mutual funds, bond funds, etc) and excellent customer service. all of your account activity -- including contributions and transfers among investments -- can be done online. in any case, an IRA (Traditional or Roth) is just an account, not an investment itself. selection of the constituent investments to go into your IRA is what will determine long term investment performance. there is no better way to learn about what types of investments to read two texts: Ferri, "All About Asset Allocation", and Bernstein, "The Four Pillars of Investing". these are not math books; instead they will give you basic knowledge which will help you select and then review mutual, index, and bond funds for your IRA. both of these books can be picked up from Amazon for less than $30 total, and will put you miles ahead of 99% of long term investors. ar-jedi |
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Vanguard, Janus, any big brokerage house. Go with a simple estimated time to retirement mutual fund. Don't over think it! $500 a month in a Roth for next 20 yrs and you'll retire a MULTImillionaire you can't put $500 into a roth every month. $458 jackass |
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Quoted: Vanguard Be careful of some brokerage companies because of additional fees/expenses related to investing in mutual funds. Many mutual fund specific companies like Vanguard, T. Rowe Price, Charles Schwab allow you to invest in their mutual funds with a minimum amount of initial investment ($1000 - $3000) to open the account and they have low expense ratios for each fund. Some brokerages including Scottrade allow you to buy certain securities commission free. They list and detail them. TD Ameritrade allows commission-free buying of a dividendETF I like symbol VYM. Couple that with a Roth IRA, I think that is a decent savings vehicle for the long (20+ year) term. You can invest monthly without commission fees. 3% dividend return you can reinvest/compound. Risk spread out across a lot of companies. |
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Quoted: Quoted: Quoted: Vanguard, Janus, any big brokerage house. Go with a simple estimated time to retirement mutual fund. Don't over think it! $500 a month in a Roth for next 20 yrs and you'll retire a MULTImillionaire you can't put $500 into a roth every month. $458 jackass I forgot to mention that a 28 year old is going to NEED to be a multi millionaire to be able to retire  |
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Vanguard, Janus, any big brokerage house. Go with a simple estimated time to retirement mutual fund. Don't over think it! $500 a month in a Roth for next 20 yrs and you'll retire a MULTImillionaire you can't put $500 into a roth every month. $458 jackass I forgot to mention that a 28 year old is going to NEED to be a multi millionaire to be able to retire
True dat!! And then some |
| I'm 30 and have been putting into a Roth 401k for quite sometime but I thought it would be a good idea to start up a Roth IRA a few months ago. It was really easy to set up online through Fidelity. You actually have until March 15th to put up to $5000 in for 2012 and you can put in up to $5500 for 2013. |
You seriously asked this question in GD?
It is simple. 1) Call Vanguard. Tell them you want to set up a Roth IRA. 2) Fill out the paperwork they will send you. 3) Send them money, either via check or electronic fund transfer. 4) Log into the website and indicate where you want the money to go. If you don't pay attention to investments, set it up to automatically invest every month and pick a Lifecycle Fund with a Target Retirement date and you're done. Leave it on autopilot and forget about it. If you do pay attention, then... 5) The Roth is a vehicle for tax advantaged investing. You can put many things into the vehicle and they all ride along for the tax advantaged goodness. If you are investment savvy you put bonds, stocks, precious metals, mutual funds, etc into your Roth. You can cruise over to sites like Bogleheads to learn about what to stick into your tax advantaged vehicles (so to speak), which may vary depending on your tax bracket now and at retirement. The short answer is that US stock mutual funds are usually a good choice to put into a Roth. The max for 2013 should be $5500, I believe. |
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Depends on what you have available. I have a Roth through Chuck Schwab, it was exceptionally easy to set up. I also have an IRA and non-tax-advantaged accounts through them. They tend to charge a little more if you don't have enough money under management, and there are other companies that have lower charges if you don't have a lot of money.
But any of them will work, just pick the one that has the best features/services/fees for the amount of money you have. It may make sense to switch when you're older and your retirement accounts are larger. Things that you have to pay for (trades, money orders, financial advising) tend to become cheaper as you become worth more to them by having more money. And if you're saving for retirement, that happens.  
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Vanguard, Janus, any big brokerage house. Go with a simple estimated time to retirement mutual fund. Don't over think it! $500 a month in a Roth for next 20 yrs and you'll retire a MULTImillionaire you can't put $500 into a roth every month. $458 jackass I forgot to mention that a 28 year old is going to NEED to be a multi millionaire to be able to retire
$500 a month, and get yourself something real nice for Christmas.
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Quoted: Quoted: Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway). Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? open a no-cost IRA at one of the "big three": Fidelity, Vanguard, or T.Rowe Price. at any of these three companies you will find the largest selection of potential investment vehicles (incl. mutual funds, bond funds, etc) and excellent customer service. all of your account activity -- including contributions and transfers among investments -- can be done online. in any case, an IRA (Traditional or Roth) is just an account, not an investment itself. selection of the constituent investments to go into your IRA is what will determine long term investment performance. there is no better way to learn about what types of investments to read two texts: Ferri, "All About Asset Allocation", and Bernstein, "The Four Pillars of Investing". these are not math books; instead they will give you basic knowledge which will help you select and then review mutual, index, and bond funds for your IRA. both of these books can be picked up from Amazon for less than $30 total, and will put you miles ahead of 99% of long term investors. ar-jedi Excellent post. Picked them both up for 33.54 shipped. Thank you. I've been wondering about this as well. |
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Thank you! Lots of good information I'm going to have to study. I know I'm gonna get kicked for saying this, but I've been listening to dave ramsey. What are these magical good growth stock mutual funds that average 12% returns? Unobtaininum until the economy starts moving. Earliest projected time - 2016. And still, 12% is pretty damn aggressive, and thus risky. 8% though, has traditionally been available over time. We did briefly have that level of growth in the stock market a couple years back, but it was mainly recovering what everyone lost in the great panic of 08. |
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Quoted: Quoted: Thank you! Lots of good information I'm going to have to study. I know I'm gonna get kicked for saying this, but I've been listening to dave ramsey. What are these magical good growth stock mutual funds that average 12% returns? Unobtaininum until the economy starts moving. Earliest projected time - 2016. And still, 12% is pretty damn aggressive, and thus risky. 8% though, has traditionally been available over time. We did briefly have that level of growth in the stock market a couple years back, but it was mainly recovering what everyone lost in the great panic of 08. also, don't just go on average return. If you lose 10% the first year and then gain 10% the second year, your average return is 0, but you've still lost money. |
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Quoted: Thank you! Lots of good information I'm going to have to study. I know I'm gonna get kicked for saying this, but I've been listening to dave ramsey. What are these magical good growth stock mutual funds that average 12% returns? Dave is not a bad dude to listen to if you are starting out. He makes the point that you can't live like a pimp and hope to retire like a King unless you get REALLY lucky. It makes more sense to live comfortably and save and invest so you can put your money to work for you and retire a King later on in life. He turned my money ideas (basically none) around and now I actually stop to think about things strategically. Once you get his concepts and disciplines you can branch out and grow. |
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Thank you! Lots of good information I'm going to have to study. I know I'm gonna get kicked for saying this, but I've been listening to dave ramsey. What are these magical good growth stock mutual funds that average 12% returns? Unobtaininum until the economy starts moving. Earliest projected time - 2016. And still, 12% is pretty damn aggressive, and thus risky. 8% though, has traditionally been available over time. We did briefly have that level of growth in the stock market a couple years back, but it was mainly recovering what everyone lost in the great panic of 08. huh? you could have thrown a dart, selected a fund, and made >12% last year. hell, i have a couple of BOND funds that made more than 12% last year. now then, i don't expect 12% every year but 2012 was "good". ETA: i'm not alone... http://www.ar15.com/forums/t_1_5/1394665_How_is_your_retirement_account_doing_this_year_.html ar-jedi |
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Excellent post. Picked them both up for 33.54 shipped. Thank you. I've been wondering about this as well. good work. ps: i was handing out the same advice in 2008:
http://www.ar15.com/forums/t_1_133/667185__ARCHIVED_THREAD____Best_401K.html&page=1#i13535370 ETA also see for you DIY'ers, here are a pair of (older) threads that explain how to use Morningstar's InstantXray tool on your portfolio, and then interpret the results... http://www.ar15.com/forums/t_1_5/1394665_How_is_your_retirement_account_doing_this_year_.html&page=2#i36826612 ar-jedi |
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Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway). Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? Call T Rowe Price |
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Edjamacate me. I'm 28, looking to max it out. Don't have any other retirement setup through an employer (worth mentioning anyway). Where do I go? Is this sort of thing all done online? What do I need to know before selecting mutual funds? btw, before you start contributing to an IRA or other retirement account... -- your credit cards are paid off? -- you have established an emergency fund? ar-jedi |