[Need] Roth IRA [Recommendations]

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throdd
Posts: 1
Joined: Sun Jun 25, 2017 6:38 pm

[Need] Roth IRA [Recommendations]

Post by throdd »

Hello everyone I'm 25 years old and a novice when it comes to investing. I have a 401k through my work and make about 25,000 and year. All i want to do is invest invest invest but not sure where to start. I have read a lot about Roth IRA's and have heard a lot of good things about them. I don't have much time to actually run my account. Whats the best way to go about getting a Roth IRA and having someone run it for you. What are some recommendations?

Thank you!
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David Jay
Posts: 14569
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: [Need] Roth IRA [Recommendations]

Post by David Jay »

A Roth IRA is a great investing tool, but if you post your fund choices and expense ratios ("ER"s) on the funds in your 401K, folks would be glad to give you some advice on that. Both tools (Roth and 401K) are useful in their place because one is pre-tax and the other is post-tax. Also, the Roth is limited to $5500 a year, so as your income grows you may not have a choice, you may have to put some in the 401K

Regarding a Roth, my son is 24 and just opened his Roth at tax time this spring. He started by opening an account (he chose Vanguard because I also use Va guard) and put $1000 into the account. He put it in a TargetRetirement fund, this is a fund that adjusts the investments over your lifetime to meet the needs of different periods of life.

Don't overlook the saver's tax credit, you may get some "free money" if you qualify.

On a more general note, we recommend that you read Bernstein's "If You Can", free download here: https://www.bogleheads.org/wiki/Boglehe ... art-up_kit
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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