venomadness
New Member
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Location: DE
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| ING Direct Roth IRA |
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I am looking into opening a Roth IRA, but I am extremely confused on who to go through. I have a sizeable Orange savings account through ING and was planning on opening one with them. However, they show 15 different Fund Categories to choose from ranging from conservative to high risk. I thought an IRA was an IRA.
Does anyone know about the ING IRA's?
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Sun Mar 04, 2007 9:36 pm |
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venomadness
New Member
Cash: $ 0.85
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Location: DE
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quote:
Originally posted by muneepenee
1. open an IRA akkount at a mutual fund kumpanee, such as Vangard.
Then select wich av theer funds yu want tu put munee intu.
I find it hard to take financial advice from someone who can't spell... 
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Mon Mar 05, 2007 5:56 pm |
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Kiaser
Senior Member
Cash: $ 43.05
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Joined: 12 Apr 2006
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quote:
Originally posted by venomadness
quote:
Originally posted by muneepenee
1. open an IRA akkount at a mutual fund kumpanee, such as Vangard.
Then select wich av theer funds yu want tu put munee intu.
I find it hard to take financial advice from someone who can't spell...
You should search for his other posts, he knows what he's talking about even if it's hard to read...
An IRA is not a fund, it simply is a tax law that dictates how you put money into stocks and how it is taxed. The funds inside an IRA can be funds that you would normally invest in such as if you just wanted to invest money into stocks/bonds/cash reserves. A Roth IRA, for example, just dictates that you can put only X amount of money into the funds per year and the money you put in has to come from after tax dollars (money left over after your paycheck is taxed), as well as benefits such as you aren't taxed later in retirement for the gains or withdrawls (so if you are in a lower tax bracket now, might as well use a Roth because you aren't taxed as much as you possibly would be when you retire. A Traditional IRA is kinda the opposite, you fund it with pre-taxed dollars and then pay taxes on the gains and withdrawls in retirement. There's lots of little things to learn about each, but I'm just trying to show you that an IRA is not anything but a law and how money is handled/taxed. Thinking an IRA is a fund or collection of funds is a common misconception.
I opened my Roth IRA with Vanguard. It was quick and easy. You'll have tons of funds to select from, and if you wanna pick and choose you'll have lots of researching to do. However, I don't like to be bothered by which stocks/bonds/cash reserves to choose, nor do I like having to worry about how much percentage of my cash should go to which category. So I chose the Vanguard Target Retirement Fund for my age group (they also have a Lifestyle Target Fund, which is very similar). The stocks/bonds/cash reserves inside those funds are picked out by researchers who have a LOT more time and a LOT more skill than you or I could ever have. They also choose when to buy and sell stocks/etc inside the funds, constantly moving the money around for what would be more beneficial. Also, they control the percentages of your cash and how much goes where (stocks or bonds, etc). When you are young they know you have a long time to go before retirement, so they put your money more into stocks because you can take advantage of high gains but also have enough time to recover from losses that happen in high-risk stocks. As you age, they adjust the percentages so it's more stable the closer you get to retirement when you can't afford to have the huge ups and downs.
Hope this helps
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Mon Mar 05, 2007 7:51 pm |
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venomadness
New Member
Cash: $ 0.85
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Joined: 04 Mar 2007
Location: DE
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Now that is some good information. I appreciate the good advice.
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Mon Mar 05, 2007 10:03 pm |
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janes-addiction
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I suddenly feel muneepenee and I have a lot more in common  .
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Mon Jul 16, 2007 11:58 pm |
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