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03-01-2009, 06:12 PM	#1
ashandri Registered User Join Date: Feb 2009 Posts: 9	Roth IRA? Hi. I have already posted a couple times on this board and received some great advice, but now have a few additional questions. We are a young family (29 and 30) with two little girls (2 and 3). We were thinking about starting a 529 plan and putting some additional money into mutual funds with fidelity. However, after doing more research and receiving advice, I think we are going to begin by putting money into a Roth IRA instead of a 529. However, I still have a couple questions. 1) If our state 529 plan allows us to deduct contributions, would the Roth IRA still be better (Roth does not allow this, correct)? 2) Also, could we also take out a 529 plan in addition to the Roth so that grandparents could contribute? Would that be unwise? 3) Lastly, (I'm sure this is a dumb question) I noticed there are all sort of different investment options with the Roth. Who would be the best person or place to go to for help in deciding how to invest at this point in time? 4) I read an article advising "online banking" and noticed ING offered a Roth IRA. Would it be okay to begin a Roth through ING or should we do it through our bank?

03-02-2009, 04:25 PM

clydewolf

Registered User

Join Date: Oct 2001

Posts: 1,586

Quote:

Originally Posted by ashandri

Hi. I have already posted a couple times on this board and received some great advice, but now have a few additional questions. We are a young family (29 and 30) with two little girls (2 and 3). We were thinking about starting a 529 plan and putting some additional money into mutual funds with fidelity. However, after doing more research and receiving advice, I think we are going to begin by putting money into a Roth IRA instead of a 529.

Good advice, there are no known Retirement Loans available.

Quote:

However, I still have a couple questions.
1) If our state 529 plan allows us to deduct contributions, would the Roth IRA still be better (Roth does not allow this, correct)?

I do not know what your state may or may not allow for deductions. I do not know of any state that does allow a ROTH IRA Contribution to be deducted.

Quote:

2) Also, could we also take out a 529 plan in addition to the Roth so that grandparents could contribute? Would that be unwise?

YES, YES! Get the Grandparents involved! It makes us feel needed and appreciated.

Quote:

3) Lastly, (I'm sure this is a dumb question

) I noticed there are all sort of different investment options with the Roth. Who would be the best person or place to go to for help in deciding how to invest at this point in time?

There are many places to begin a ROTH IRA. Some have higher minimums to open an account than others. Have you considered a low cost broker? What investments will you be choosing? How often will you be trading your IRA investments? Two mutual funds companies that I like are http://smifund.com/. The management companies here try to be invested in the current best performing funds so you do not have to do that work. Or you could use a broker, and the top 25 Kiplinger funds, http://www.kiplinger.com/columns/fu...ndwatch1031.htm. Or a broker and an investment news letter. One letter I like is http://soundmindinvesting.com/. This news letter currently has a free 30 day web membership. Or you you could use a mutual fund company such as Fidelity, T.R. Price, Vanguard, or one of many others. It depends on what you want, what you know, and your comfort level with selecting your investments.

4) I read an article advising "online banking" and noticed ING offered a Roth IRA. Would it be okay to begin a Roth through ING or should we do it through our bank?[/QUOTE]
Maybe.

03-24-2009, 10:30 AM

josephdegroff

Registered User

Join Date: Feb 2007

Posts: 149

Quote:

Good advice, there are no known Retirement Loans available.

"Wow, I finish my retirement next year, I wonder if I can defer these loans?"

"A little levity to brighten a dull moment, ma'am. - Lucy from Peanuts.

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03-24-2009, 01:06 PM	#4
clydewolf Registered User Join Date: Oct 2001 Posts: 1,586	Josephdegroff, I sense you and I know what we will be doing when our retirement ends....

03-24-2009, 01:17 PM	#5
blixet Registered User Join Date: Oct 2004 Posts: 631	So are you stocking up on harp strings? __________________ Don't sweat petty things and don't pet sweaty things.

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