Apr 29

Question by samhandwich22: Regarding investing in a roth IRA- what is a dividend? what is a capital gains distribution?
I opened a roth IRA via sharebuileder. I am trying to invest in a mutual fund and as a 23 year old, I am very unexperienced in this area (they dont teach you these things in college!).
It is asking me if i wanted to reinvest dividends and also asking me if i want to reinvest capital gains distributions? I dont know what either of these mean. Whats the best way for me to get the most money out of my roth IRA?

Best answer:

Answer by William
Yes, you want to reinvestment them. Dividend and capital gains distributions are paid by the specific mutual fund. Reinvesting them means that they are automatically used to purchase additional fund shares – sort of like compounding of interest on a savings account.

What do you think? Answer below!


Feb 27

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!


Feb 22

Which investing programs should be avoided? What do people think about Sharebuilder?


Feb 18

I am going to be getting out of my job in February and I need to lower my amount that I put into the investing each month. Do I just talk to my financial planner and he can take care of that. Or anre there penalization fees? I just need to lower it for a while until I get a different job or get some other similar income. Ive done this through First Command, and they been investing my money through Pioneer Investments and Franklin templeton.


Dec 7

On Investing: Contemplating the new rules for Roth IRA in 2010 On January 1, 2010, the rules for Roth IRAs change. Thanks to the Tax Increase Prevention and Reconciliation Act of 2005 (“TIPRA”), all taxpayers will be permitted to contribute to, and also convert their retirement assets, to a Roth IRA in 2010. Read more on Shenandoah Valley News


Dec 3

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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