Im pretty sure i wanna open up a roth ira in the next couple weeks (waiting on tax return) but i really dont know much about it. Does anyone know of any good sites that explain investing for retirement in a way that doesnt confuse the fuck out of you. I seen these examples on websties that say like if you put 2000 in a roth ira at 20 and leave it go till your 60 you will have like 1 mill. is this true? can someone just post up a couple good links? I plan on going to my bank and talking to one of the financial people about it this week or next. anything will help alot. thaksn
The most powerful force in the universe is compound interest
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Slim - PM me there is a west mifflin alum that you may know (or might not) that will be able to help you with any questions you might have.
They are great, I would have one but my company matches me on my 401K so it is smarter for me to go that route. If I could afford to invest more after maxing out hwat my employer matches I would get Roth. Today is the deadline to set up your contributions for one. The thing is you put in after tax $$ and the growth is not taxed. When you compound that it is a great thing. If your employer does not match contributions for 401K then roth is the way to go. Just make sure you contribution selections are diversified. If you want you can come over and I can help you look at some stuff, I have some knowledge and a degree in finance and my g/f works with retirement investments for a living and has a degree in finance as well.
here is a site that is easy to read
http://www.moneychimp.com/articles/rothira/rothintro.htm
read through it ( there are a few pages) it iwll give you a decent understanding of what you will be investing in.
thanks bics and everyone else
i just dont really know what to invest in. like should i put 20% in high risk and 80% in low risk. I just wanna make sure i have some money left when i retire. Should i invest in bonds or stocks or what?
I think it would be a good idea to meet with a few different reps and see what they suggest you do. They can draw up a plan/proposal for you so that you can get the most out of your money for what you want to do w/ it…:dunno:
yeah im probably just gonna go to my bank and talk to a few of them
jeez man, I haven’t even started building credit yet
Should start retirement fund like round 30 y.o. according to a lot of ppl…:dunno:
DISCLAIMER: I’m not a professional financial advisor.
F.D.: I currently do not own any of the following ETFs mentioned in this post.
Most mutual fund Co.'s advise a mix of 30% growth, 30% blend, 30% value, 5% bond/bond index, and 5% capital preservation for people in your age range.
I call shenanigans on that strategy for those under 30 and especially in a tax-sheltered Roth IRA.
If you’re younger than 30, you can be really aggressive…stick to the higher growth potential stock market stuff. Maybe a mix of 30% mid-cap growth, 30% small-cap growth, 20% large-cap blend, and 20% large-cap growth ETFs.
If you’re uncomfortable with assuming this much equity market risk, place 15% in bond/bond index, 25% in large-cap value 30% mid-cap blend, and 30% mid-cap growth. That way, you’re exposed to a broad range of market components which still limits your risk, but it also could lower potential returns over more aggressive investments.
ETF are one of the best ways to diversify, but pay attention to the costs associated with these, as they can eat into profits. I like Vanguard family of investment vehicles due to some of the best low cost ETFs they provide.
For a conservative ETF portfolio, I might consider something like:
20% VO (Vanguard mid-cap blend)
20% IWP (iShares Russell mid-cap growth)
20% VB (Vanguard small-cap blend)
20% VTI (Vanguard large-cap blend)
The last 20% depends on what I think might happen in the next few years.
20% RWR (Streettracks Wilshire REIT) <— this one is subject to real estate bubble not bursting…
OR
20% PHO (PowerShares Water Resource ETF) <— Water purifcation and processing stock fund. Here’s a way to tap into the water purification without being subjected directly to international risk or exposure to one stock.
Oh, yeah, one more thing…if you’re in a tax deferred acccount, don’t double up on tax-deferred investments…like don’t buy non-AMT Municipal bonds in a Roth IRA, for example.
i started the day i was legally allowed… 18 years old.
it’s all about interest… but moreso longevity… so you don’t want to go high risk all day long… there isn’t big money in retirement, it’s just solid money that is there to you can retire… if you want to be a big baller, then get out a few thousand and day trade… but be prepared to get bit once or twice.
i would consider talking to a professional about it… they sometimes can get better rates and / or know of up and coming investments that yeild ‘better’ than average returns.