Question by Sje: Roth IRA help – What type of funds to invest in for someone who knows little about investing?
I’m 34 and want to start a Roth IRA for myself and plan to to contribute the max amount in one contribution each year. I know I want to go with either Fidelity, Vanguard, or T. Rowe. I know very little about investing and would like to feel secure with the investment. I know there are too many funds to choose from and I don’t understand them. Thanks for your suggestions.

Best answer:

Answer by Shana B
I know Fidelity (and probably the others too) has funds that are named by the year that you plan to retire (so you’d pick fund for the year 2040) that will automatically redistribute your money to be more aggressive when you’re younger and more conservative and safer as you age. They mix it up b/w stocks, bonds, and cash for you.

What do you think? Answer below!

I asked a question earlier, but I’m still unsure as to which I should choose. Right now I’m 25, single and have a savings account. I’m looking into an IRA for retirement…thinking long term here(30+ years). My Credit Union offers both Traditional/Roth IRAs, and Tradtional/Roth CDs. I’ve read about the advantages and disadvantages to both types of IRAs but I’m nervous about picking the right one for my needs and the future. The pre-taxed Roth seems great, but what if I get married and we make over $160k?(With my current career path it may be possible) and I’ll likely be in a lower tax bracket upon retirement. Any suggestions?

Then people could use their own money to make ends meet, cover expenses after unemployment runs out or transfer funds from losing mutual funds to pay down high interest credit cards and 2nd mortgages.

They always talk about our money… we’ll it’s mine and I need it NOW!!!

Yes, I know this would be like a run on the bank, but they don’t deserve to be trusted with our savings any more !!!!!!!!!!!!!!!!

I have an IRA in the 6 figures range. In 2010 anyone regardless of AGI will be allowed to convert IRA accounts to Roth IRA accounts. The advantage of this is that all future gains will be tax free.

The rules regarding what IRA investments can be in are rather loose so you are not restricted to just stocks, bonds and the usual stuff.

Under this conversion, I’ll need to pay tax on the value of my account that has not previously been taxed.

I am thinking that there might be a way (loophole) to have my IRA invested in something that has an artificially low value at the time of conversion (2010) but has a high value in 2011 or other time in the future. What ideas do you have of such a scenario?

My husband is starting business school in the fall. I completed his FAFSA and our expected personal contribution is $53k per year (yikes!).

He has a considerable amount saved in his 401k account and since we are both young it might make sense to use that 401k retirement $ towards school expenses.

Is there any way to do this without incurring huge penalties? I know we would pay taxes on the amount in the 401k, but if we are using it for education expenses it seems like there might be some way to use the money without paying the penalty…

Does anyone know of a good way to do this?

I’m 34 and want to start a Roth IRA for myself and plan to to contribute the max amount in one contribution each year. I know I want to go with either Fidelity, Vanguard, or T. Rowe. I know very little about investing and would like to feel secure with the investment. I know there are too many funds to choose from and I don’t understand them. Thanks for your suggestions.

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