|
|||||||
 |
|
|
Thread Tools | Search this Thread | Display Modes |
04-16-2005, 07:20 PM
|
#1 |
|
Registered User
Join Date: Jul 2004
Posts: 21
|
Roth Ira Vs Mutual Fund For Retirement - Why Bother With An Ira If I Can Invest In A
DH HAS NO RETIREMENT ACCOUNT AND NEEDS TO START SAVING - SOMETHING -
WHAT IS THE DIFFERENCE IN SAVING MONEY IN AN IRA VS A REGULAR MUTUAL FUND? I'M CONFUSED. ALSO, WHAT'S THE ***CHEAPEST*** WAY TO START SAVING FOR RETIREMENT WHEN YOU CAN'T PAY FOR THE $2500.00 MIN. INVESTMENT TO O P E N THE ACCOUNT? ANY SUGGESTIONS?? what about ING? 500 min?? HELP!!! |
|
|
|
04-16-2005, 09:51 PM
|
#2 | ||
|
Registered User
Join Date: Mar 2005
Posts: 67
|
Quote:
A mutual fund is not an alternative to an IRA. An IRA is a type of account (Individual Retirement Account) which is different than a normal savings accounts. One could have mutual funds in the IRA account. It has cetain tax advantages in some cases. If you search around the net, youll find tons of info much better than I could write here. Quote:
Save until you have $2500. Make getting that $2500 deposit an important goal. You have more than enough income to do so IMO. But, there are other companies that will allow you to open an IRA with less than $2500. Some are $1000 (like Vanguard) and even less if you agree to an automated monthly deposit. (I know in your other post you mentioned you didnt want to do that, but its really not a bad idea as it forces you to save ALL the time, not just when it seems convenient). Do a quikc search on the internet and youll find lots of online brokers who can set you up quickly. I prefer Vanguard.com personally. I used to use Etrade, but found them nowhere near the quality of Vanguard. Vanguard's site will also give you a good description about the various IRA type accounts as well. |
||
|
|
|
|
04-17-2005, 06:11 PM
|
#3 |
|
Registered User
Join Date: Jul 2004
Posts: 21
|
Thanks -- If I withdraw money from the Janus Mercury fund- say $2500. to start a new fund, like Vanguard or something else, would I be foolish to do so? ?? Is it bad to withdraw money from a mutual fund??
All this stuff is overwhelming....basically we only have $650-$750 per month to invest or save in a bank account. That's it! (After all bills are paid). Not sure what to do!! |
|
|
|
|
04-26-2005, 09:01 AM
|
#4 |
|
Registered User
Join Date: Aug 2003
Posts: 23
|
No, it is not bad to sell mutual funds. Sometimes, you have to if the fund has lagged similar mutual funds. The only minus is that you usually have to pay your broker to sell your shares. Too many sells will result in high trading costs.
My advice would be for you to start a Roth IRA and then invest in an Index fund (probably an S&P Index fund) since you are just starting. Later, when you have more money, you can move to actively managed funds. You mentioned a minimum of $2500, but I bet that minimum is if you hold the shares outside of an IRA. Most often there are two minimums--one inside an IRA and one outside. I bet you can find index funds with minimums of $250-500. More advice--read up on mutual funds and IRAs in the tutorial section of this website (http://www.kiplinger.com/basics/tutorials/). Hope this helps out. |
|
|
|
|
04-26-2005, 09:45 AM
|
#5 |
|
Administrator
Join Date: Oct 2003
Posts: 76
|
It's easy to get started with little cash -- see "How to Invest With $500 or Less" for some ideas.
A Roth IRA is a great place to start because you and your husband can each contribute up to $4,000 this year, and the earnings grow tax-free. (You have to pay taxes on regular investments outside the IRA account.) Investing mutual funds in your IRA is an easy way to diversify. To start, you might consider T. Rowe Price Spectrum Growth (PRSGX). It requires a minimum investment of $1,000 for an IRA, but you can get in for as little as $50 a month if you set up an automatic investing plan. The fund invests in ten other T. Rowe Price stock funds to give you a good mix of small companies, large companies and foreign stocks. Use Kiplinger's Fund Finder to search for other funds with low minimum investments that meet your criteria. Hope this helps. Erin Burt Kiplinger.com |
|
|
|
|
«
Previous Thread
|
Next Thread
»
| Thread Tools | Search this Thread |
| Display Modes | |
Linear Mode
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Harrassment and threats from Washington Mutual | Unregistered | BOILING POINT | 8 | 12-15-2007 02:29 PM |
| Roth IRA: Invest in more than on mutual fund? | craigminah | RETIREMENT | 23 | 01-13-2005 03:47 PM |
| Roth IRA or Emergency Fund First? | benryanv | RETIREMENT | 6 | 01-04-2005 10:08 PM |
| Good Midcap fund to invest for Roth IRA? | CollegeGuySF | RETIREMENT | 3 | 12-10-2004 04:49 PM |
| Need Advice, please | clancygus | GETTING STARTED | 24 | 05-03-2004 07:46 PM |
SPONSORED LINKS
Powered by: vBulletin Version 3.0.1
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.