I am looking for a place to put some money ( and no i will not send it to any of you). This is going ot be a long term thing, putting in money every month, and as often as i can besides that. I checked into a few a couple of years ago, but can't remember all the lingo or even which ones I looked at. I am looking for something with a low "entry fee". Any recommendations on a name or at least where I can get some good easy to understand info?

Trying to set up my retirement plan before I even start a career. gotta plan ahead cuz you bastards are gonna use up all of our social security before I get ot enjoy it. :flipoff2:

I have an investment idea for you. It's this nifty little handle that you put on your glasses called the Opti-Grab. You should check it out, it's gonna be huge.:D

Have you already opened an IRA account? If not, I would recommend this before shopping for mutual funds.

Do a search, there is tons of info. This was one of the first to pop up in Yahoo:

Linky (http://www.fool.com/money/allaboutiras/allaboutiras.htm)

Over the long-run, most mutual funds do not even show gains as much as the S & P 500 or DOW. Something like 96% earn less if you average them out over a long period of time. For a while, Fidelity had an awesome M-fund but ever since Peter Lynch left they haven't done as well.

Vangard has a fund that mirrors the S & P. I would suggest investing in a fund that mirrors the Dow Jones Industrial Index or the S & P 500.

These are not funds but I think they are cool. They allow you to invest small amounts of money at a time. They are reletively new:

Below is a list of some of the common UITs/ETFs out there. All of these are created by large financial institutions, and usually (but not always) charge modest annual expenses to investors, commonly 0.2% (20 basis points) or less. (Any commissions paid to buy or sell them are due to the broker, of course.)

UIT that mimics the S&P 500. Named a Standard & Poors Depositary Receipt (SPDR), commonly called a Spider or Spyder. Trades as SPY on the AmEx and has a value of approximately 10% of the S&P 500 index. As of this writing, the trust has nearly $18 billion.

UIT that mimics the NASDAQ 100 Index, commonly called a Qube. Trades as QQQ on the AmEx and has a value of approximately 2.5% of the NASDAQ 100 index. As of this writing, the trust has about $12 billion.

UIT that mimics the Dow Jones Industrial Average. Named the Dow Industrial Average Model New Depositary Shares, commonly called DIAMONDS. Trades as DIA on the AmEx and has a value of approximately 1% of the DJIA.

Select sector SPDRs - these slice and dice the S&P 500 in various ways, such as technology companies (symbol XLK), utilities (XLU), etc. All are traded on the AmEx.


Here's the article: http://invest-faq.com/articles/stock-uit-spdr.html

Look, simple answer that you don't need to bend your brain trying to figure out?

1) Max out your Roth IRA every year. That's the one that is tax free when you withdraw.

2) If you have a 401k, contribute at LEAST enough to get the full match from your employer.

3) If you have anything left buy a Vanguard index fund. Big ones like "S&P-500" or "Whole Market" Funds.
Index because in the early stages of a recovery, which we are in, Index funds take advantage of the entire market starting to come up.
Vanguard because their costs are lowest around.
They have funds you can buy into with as little as $3,000 to as much as a million or more.

4) (Optional, but a good idea for those of us who are paranoid.)
Set aside a small amount of money each month to buy gold small denomination gold and silver coins.
In the first place, inflation make them more valuable.
In the second place, and this is the part that appeals to me; if the shit ever hits the fan and your paper money becomes fule for the wood stove, your precious metal coins can still be spent and they have a defined weight, so there's no guessing.

guess i should have put this in the first post. I am a college student...unemployed right now, but looking for at least part-time work, if not fulltime. I have a bad history of blowing all of the cash i have regularly. I want something that I can put into, but NOT pull out of early...savings accounts dont work for me as access to the funds is too easy, and I constantly see that money. I want to stay in this for at least 20 years (assuming no drastic economic changes).

Vanguard 500 Index. The do nothing investment. Set it up as a Roth and contribute to it every year. If you need deductions do it as a regular IRA. This is assuming that you have ZERO debt except for a mortgage. Investing while have cc debt or personal loans is very stupid.

yup... zero debt, well recorded debt at least, I don't owe any establishment any cash.

I'll check out the vanguard index.
thanks

Seriously, read Mutual Funds for Dummy's.

Coming from an ex financial advisor, I would say for retirement go with the ROTH IRA. You can roll this into your 401K when you get a job with one.

BTW, all you guys saying Mutuals suck, look at your 401K. What are you investing in? MUTUAL FUNDS!!!!

DImtri

Originally posted by Flatty
Coming from an ex financial advisor, I would say for retirement go with the ROTH IRA. You can roll this into your 401K when you get a job with one.

BTW, all you guys saying Mutuals suck, look at your 401K. What are you investing in? MUTUAL FUNDS!!!!

DImtri

The stats don't lie. Something like 96% of all mutual funds do not perform as well as the S&P 500 or DJIA. MUTUAL FUNDS DO SUCK!!!

Originally posted by 85runnerAZ


The stats don't lie. Something like 96% of all mutual funds do not perform as well as the S&P 500 or DJIA. MUTUAL FUNDS DO SUCK!!!

Vanguard 500 Index Fund mirrors the S&P500:rolleyes:

Originally posted by 85runnerAZ
Over the long-run, most mutual funds do not even show gains as much as the S & P 500 or DOW. Something like 96% earn less if you average them out over a long period of time. For a while, Fidelity had an awesome M-fund but ever since Peter Lynch left they haven't done as well.

Vangard has a fund that mirrors the S & P. I would suggest investing in a fund that mirrors the Dow Jones Industrial Index or the S & P 500.

These are not funds but I think they are cool. They allow you to invest small amounts of money at a time. They are reletively new:

Below is a list of some of the common UITs/ETFs out there. All of these are created by large financial institutions, and usually (but not always) charge modest annual expenses to investors, commonly 0.2% (20 basis points) or less. (Any commissions paid to buy or sell them are due to the broker, of course.)

UIT that mimics the S&P 500. Named a Standard & Poors Depositary Receipt (SPDR), commonly called a Spider or Spyder. Trades as SPY on the AmEx and has a value of approximately 10% of the S&P 500 index. As of this writing, the trust has nearly $18 billion.

UIT that mimics the NASDAQ 100 Index, commonly called a Qube. Trades as QQQ on the AmEx and has a value of approximately 2.5% of the NASDAQ 100 index. As of this writing, the trust has about $12 billion.

UIT that mimics the Dow Jones Industrial Average. Named the Dow Industrial Average Model New Depositary Shares, commonly called DIAMONDS. Trades as DIA on the AmEx and has a value of approximately 1% of the DJIA.

Select sector SPDRs - these slice and dice the S&P 500 in various ways, such as technology companies (symbol XLK), utilities (XLU), etc. All are traded on the AmEx.


Here's the article: http://invest-faq.com/articles/stock-uit-spdr.html

Thanks for that excellent info. I've been reading up on this, but never run across that FAQ. Thanks again.

I've read some good discussion about Roth IRA vs. 401K. 401K allows you to shelter some taxes now. However, for most people, I think you'll end up paying more in taxes when you withdraw your money. The whole premise behind a 401K is the idea that your tax braket will be less at retirement than now. I don't that will be the case because as you get social security, pension, and other investment money, this will put in a higher tax bracket and you could end up paying 50% in tax for your 401K withdrawls. Also, I don't know how much we'll be taxed at retirement.

IMHO, the best option would be to max out your Roth IRA contribution (3,000 per year) and either buy mutual funds or stocks (doesn't matter because you can choose which investment vehicle you choose) with it. Another plus.. you don't have to withdraw money until you feel/need to.

Contribute to 401K at least up to the amount the company will match because that is "free" money.

Best option for young people (in their 20's) would be to start investing at an early age and let compounding work in their favor.

ya i started my roth ira when i was 16 and put like 75% of it into vanguard s&p 500 fund. should be lots when i retire.

Originally posted by Flatty
...go with the ROTH IRA. You can roll this into your 401K when you get a job with one.


Why would you do that?

Unless you LIKE paying the same taxes twice I suppose...

Originally posted by fj40charles
I've read some good discussion about Roth IRA vs. 401K. 401K allows you to shelter some taxes now. However, for most people, I think you'll end up paying more in taxes when you withdraw your money. The whole premise behind a 401K is the idea that your tax braket will be less at retirement than now. I don't that will be the case because as you get social security, pension, and other investment money, this will put in a higher tax bracket and you could end up paying 50% in tax for your 401K withdrawls. Also, I don't know how much we'll be taxed at retirement.

IMHO, the best option would be to max out your Roth IRA contribution (3,000 per year) and either buy mutual funds or stocks (doesn't matter because you can choose which investment vehicle you choose) with it. Another plus.. you don't have to withdraw money until you feel/need to.

Contribute to 401K at least up to the amount the company will match because that is "free" money.

Best option for young people (in their 20's) would be to start investing at an early age and let compounding work in their favor.

Withdrawing from a Roth:

I read that you can withdraw your CONTRIBUTIONS, tax free, to a Roth after 5 years. Is this for ANY reason whatsoever?

Originally posted by nakona
....... and this is the part that appeals to me; if the shit ever hits the fan.......


IF, that happens, depending on the shit you are refering to, I prefer to have my investment in jacketed lead.

OK, Rob, pipe in with a 12 year old crack.

All bullshit aside, I have 4 growth, 2 tech mutuals. The last 3 years have me wondering if they are worth the paper they are printed on. Doesn't matter. They were part of an employment benifit. No cost to me, so I'll take what I can get.

My money is in bank IRA's, mostly traditional, some Roth. In the long run for a poor bastard like me, I feel that is the best bang for the buck.

I guess it depends on your age and financial situation.
1. Traditonal IRA for the tax break now.
2. Roth for the balance of taxable/non-taxable income at retirement.
3. Some type of growth oriented fund.
4. 401K whenever possible.

Time is your friend, start NOW.

Originally posted by v-twintech



IF, that happens, depending on the shit you are refering to, I prefer to have my investment in jacketed lead.

OK, Rob, pipe in with a 12 year old crack.


ACtually, if you mean me, youth means you're ahead of me in this thread. Should have played that up and beat me down with it. :flipoff2:

Originally posted by Robert C Anderson


Withdrawing from a Roth:

I read that you can withdraw your CONTRIBUTIONS, tax free, to a Roth after 5 years. Is this for ANY reason whatsoever?

What I have read, you qualify for tax exemption after 5 years. You still need to be 59 1/2, or withdraw for a home purchase. No other conditions apply.

Originally posted by v-twintech


What I have read, you qualify for tax exemption after 5 years. You still need to be 59 1/2, or withdraw for a home purchase. No other conditions apply.

This (http://invest-faq.com/articles/ret-plan-roth-ira.html) said that contributions can be withdrawn at any time, penalty-, and tax-free. That's what I thought, but they explained the rest of the terms that I was confused about.

Originally posted by Robert C Anderson


This (http://invest-faq.com/articles/ret-plan-roth-ira.html) said that contributions can be withdrawn at any time, penalty-, and tax-free. That's what I thought, but they explained the rest of the terms that I was confused about.

I am getting my info from Bank of America's site. Easy reading for a 12 year old like me.:flipoff2:

Originally posted by dirtdirt99
ya i started my roth ira when i was 16 and put like 75% of it into vanguard s&p 500 fund. should be lots when i retire.

16? Interesting, I thought you had to be 18 to start an IRA :confused:

im 19 so i guess I qualify. Is there any minimum amount I can put in?? I cant exactly drop $1000 in right up front....could maybe pull a couple hundred.

Originally posted by fj40john
im 19 so i guess I qualify. Is there any minimum amount I can put in?? I cant exactly drop $1000 in right up front....could maybe pull a couple hundred.

John,

Call a mutual fund company. Many will waive the minimum requirement if you agree to a contribute each month. Each company will have a minimum monthly contribution requirement.

$250.00 per month will get you $3000 per year contribution. It may/may not seem like of money depending on how much disposal income you have. You'll be thanking youself 20-30 years down the road if you start now.

Charles

Originally posted by nakona



Why would you do that?

Unless you LIKE paying the same taxes twice I suppose...

How are you paying the same taxes 2 times? You do not get penalized with taxes in a rollover, hence the name rollover.You have 60 days to roll it from one to another without any taxes or penalties.

Dimitri

Originally posted by Flatty


How are you paying the same taxes 2 times? You do not get penalized with taxes in a rollover, hence the name rollover.You have 60 days to roll it from one to another without any taxes or penalties.

Dimitri

If you invested in a Roth IRA< you paid taxes on that income on the front end. If you roll it into a 401k, you will pay taxes AGAIN on that money when you take it out.


Nakona is correct - moving money from a Roth IRA to a 401k is a BAD IDEA.



Here is the order www.daveramsey.com suggests:

1. Contribute to your 401k to get the FREE MONEY your employer matches.

2. THEN, max out your Roth IRA.

3. THEN, go back and add additional to your 401k so you are saving 15% of your income across all types.



Mutual fund investments shoudl be spread ot over 4 types of funds: S&P, International, Small Cap. and at least one other are good suggestions. The spread is to keep you from getting tanked if one segment of the market takes a dive.

I have some money from my 401K from my previous employer that I'm in the process of rolling over. You can either rollover to another 401K plan, not rollover if you choose not to (really depends on your employer), or rollover part of it to an Roth IRA.

If you choose to rollover a 401K money into a Roth IRA, then you'll have to claim that as income. I plan to gradually rollover all of my 401K into a Roth IRA. I'll do little at a time so I will not have a huge tax liability. My plan is to sell some of my tech stocks which are in the toilet and use this loss to offset any "income" from rolling over into the Roth IRA. IMHO, the Roth IRA is best investment vehicle for me because I will not get taxed on the capital gains when I withdraw in the future.