| Roth IRA providers -- what comes next |
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robinbird
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| Roth IRA providers -- what comes next |
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My husband and I are in our 40s and have always been good about saving and spending. However, where we really need help is in investing. Everything I read seems to be in two camps 1) for the absolute novice with almost no money, and 2) for savvy invester. We fall somewhere between the two.
We each want to put $5,000 into Roth IRAs for 2010. If I understand well, it looks like what we need to do is choose a Roth IRA provider, like TradeKing or ScottTrade or some similar company.
I know this sounds like a dumb question, but after we choose the provider, what options do we have? What we probably need is something like an index fund or something where we don't need to be terribly knowledgeable about which investments to make.
Also, for our ages, are there any other types of investments we should consider besides stocks for a Roth IRA? (My husband's 401k is all in stocks, we have a mutual fund of stocks, and then a money market account.)
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Tue Dec 28, 2010 1:12 am |
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oldguy
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quote:
If I understand well, it looks like what we need to do is choose a Roth IRA provider, like TradeKing or ScottTrade or some similar company.
IMO a no-load fund company would be better - they are better equiped for long term retirement accounts than the on-line brokers (who cater to traders and will want you to buy/sell more often to generate commissions). Try Vanguard or Fidelity, they are the two 'majors' - I would use either a Target Fund or a SP500 Index Fund.
quote:
for our ages, are there any other types of investments we should consider besides stocks for a Roth IRA? (My husband's 401k is all in stocks, we have a mutual fund of stocks, and then a money market account.)
For forty-somethings, I would use either 100% stocks/0% bonds or 80%/20% if you consider yourselves risk averse. The Law of Finance - risk and return are directly proportional. You cannot become wealthy w/o risk, you can only track inflation with your savings.
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Tue Dec 28, 2010 2:31 am |
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jray51515
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I'd go start looking for a reputable mutual fund company whose asset allocation is diversified. U can also do stock through a broker if you prefer a high risk reward ration but that is a risky move for newbies.
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Tue Dec 28, 2010 8:34 am |
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robinbird
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Joined: 28 Dec 2010
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Thank you very much for the replies. I really appreciate it. We're in the process of checking out Vanguard and Fidelity.
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Mon Jan 03, 2011 5:37 am |
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