Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This would be for retirement which would probably be very far off for me, probably at least 30 years.
What should I invest in? I assume a Roth IRA maybe? If I was to do that what should the Roth IRA money be invested in?
From my understanding you can have the Roth IRA money invested in a mutual fund and those are just a collection of stocks right and as such there would always be a risk of losing that money correct?
Also had a question about Roth IRA's. When you pull out the money you don't get taxed on any of it right? Even the gains that you had since you put it in the IRA?
I am a super newbie when it comes to investing so I'm asking your help to straighten me out.
if you are asking these questions you need to start educating yourself on the subject before you can make an informed decision.. first get some education on the subject ,then asking the questions will be far more meaningful.
if you are asking these questions you need to start educating yourself on the subject before you can make an informed decision.. first get some education on the subject ,then asking the questions will be far more meaningful.
I have done some research and gotten the answers to some of my questions. Where would you suggest I look for the basic answers other than Google?
This would be for retirement which would probably be very far off for me, probably at least 30 years.
What should I invest in? I assume a Roth IRA maybe? If I was to do that what should the Roth IRA money be invested in?
Roth IRAs are great investment vehicles for retirement because your money grows tax-free and can be withdrawn tax-free starting at age 59 1/2. What should you be invested in? It all depends on how much risk you're willing to accept. Before you put any money in the stock market I would figure out what your target asset allocation is.
Quote:
From my understanding you can have the Roth IRA money invested in a mutual fund and those are just a collection of stocks right and as such there would always be a risk of losing that money correct?
Yes. Owning one share of a mutual fund means you own a fraction of a share of whatever securities contained in the fund.
Quote:
Also had a question about Roth IRA's. When you pull out the money you don't get taxed on any of it right? Even the gains that you had since you put it in the IRA?
You can always pull out your contribution tax free. Once you hit 59 1/2 you can pull out the contribution and gains tax free. If you withdraw any gains before retirement age you will get hit with a financial penalty.
Quote:
I am a super newbie when it comes to investing so I'm asking your help to straighten me out.
The best thing to do would be to read a For Dummies Book or Bogleheads Guide to Investing so you can get your feet wet. This particular investment forum tends to attract short term buy/hold conversations. You should consider finding a retirement investing forum if you plan on putting the money into an IRA.
roths may not be a great way to go unless your income with no pay checks coming in will be higher in retirement.
there are no blanket statements possible without knowing all the details of your projected situation at retirement.
if its that far from retirement then its a roll of the dice as to whether a roth makes sense or not.
now that im approaching retirement ,with taxes lower then ever and the brackets rising on average about 3% a year allowing more and more income through at lower and lower rates the roth would have been a poor choice for me.
a 65 year old retired couple can pay under 1500.00 bucks tax on 35k taken from a tax deferred plan today. thats amazing considering the deduction amount they may have got while working.
the fact its easily touched by you may be a negative also. if its that easy to hit there is a good chance it will serve no purpose in retirement as it will be spent way before.
its all about the unknown as to which way will be best since no one knows where taxes will be when its your turn.
there is no quick answers as to which is better. its a very personalized issue.
What should you be invested in? It all depends on how much risk you're willing to accept. Before you put any money in the stock market I would figure out what your target asset allocation is.
Shouldn't he be warned that in the current situation historical performance means nothing?
if you are asking these questions you need to start educating yourself on the subject before you can make an informed decision.. first get some education on the subject ,then asking the questions will be far more meaningful.
This. You should read at least a couple books to understand the fundamentals before entering into a long term investment. I have read 3 so far that I would highly recommend: The Intelligent Investor, Million Dollar Portfolio, and The Power Curve.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
read and learn first
