Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    

Roth IRA advice

Reply to topic
Money Talk > Retirement Planning

Author Thread
First Time Poster

Cash: $ 0.25

Posts: 1
Joined: 07 Mar 2017

Roth IRA advice  Reply with quote  

New to the forum looking for some advice on where to open a Roth IRA account. I am 26 years old with no debt and contributing 20% to my employer's 401k. At this point in time I don't feel I have enough knowledge to manage my own account. Been looking into robo-advisors like betterment (current leader), wealthfront, acorn, or going with a Vanguard target-date fund. Been doing research on both but thought maybe somebody could lend some advice on which route to go? Thanks
Post Tue Mar 07, 2017 11:41 pm
 View user's profile Send private message
Senior Member

Cash: $ 714.80

Posts: 3476
Joined: 21 May 2006
Location: arizona
 Reply with quote  

At this point in time I don't feel I have enough knowledge to manage my own account.

Investing, becoming wealthy, has an interesting dichotomy. In THEORY, investing is very complex - stocks, ETFs, mutual funds, puts/calls, straddle options, Elliot Waves, Fibonacci Series, yada. But reducing the theory to PRACTICE is deceptively simple.

The simple version is in this book "The Little Book of Common Sense Investing" by John Bogel (founder of Vanguard). Costs about $15 on Amazon. The book is only about 7 years old, but it is the exact method that I used for over 35 years. I gave a copy to my daughter.

Give it a read - I think, with your new knowledge, you will scratch betterment, etc.
Good job on the 401k and the Roth idea.

If you invest $500/m in an 11%/yr fund, you'll have about $2,000,000 at age 60. (The power of compounding is a wonderful thing, all it takes is "time"). You can adjust the $500/m to match your goal - eg, $250/m = $1,000,000, $1000/m = $4,000,000 and so on.
Post Wed Mar 08, 2017 2:29 am
 View user's profile Send private message

Cash: $ 380.25

Posts: 1871
Joined: 09 Feb 2009

 Reply with quote  

I agree with what Old Guy is saying about investing in the stock market for the long term, because what you have going for you is time and compound interest. When I was in my late 20's I put 6k in the S&P500 and after 5 years took it out and took a 40% tax hit to pay credit card bills for not spending wisely. Now I'm 46 and that 6k could be worth 54k. Wow, that credit card spending was really stupid.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Mar 08, 2017 8:21 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      

Money Talk © 2003-2016