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Yes, I realize the cons of going with a banks financial advisor. It mostly happened because at the time I worked there and didn't know a whole lot about it all.
So, currently there's $1700 in the IRA, I plan to move it and add some to it, at least making it $2000. So with vanguard, as was mentioned, I could open an IRA and use ETFs (which has no fee right? Or at least not all do if I've read correctly) plus contribute until I have more money to meet their requirements?
Or, would it be better to look elsewhere? I just want a simple site to use, lowest fees possible and something that offers diversity/options. Of course good customer service as well.
Quote:
Originally Posted by Petunia 100
The requirement is earned income. Self-employment income is considered earned income. However, rental income is not. So, your exact meaning here becomes important. Do you own rental properties and report the income on a Schedule E? That does not meet the requirement of earned income. Do you provide rental property management services to others and report that income on a Schedule C? That does meet the requirement of earned income.
If your income does not qualify you to make IRA contributions, your spouse's earned income will do, so long as you are filing jointly.
As to which type of tax treatment is better, Roth or traditional, it just depends. IMO, both is the optimal choice.
Remember that everyone gets to have some taxable income taxed at 0%, some at 10%, and some at 15%. Why would you pay say 25% now in order to avoid paying 0%, 10%, or 15% later? It makes a great deal of sense to aim to accumulate 500k or so in traditional accounts, then the rest in Roth accounts.
We do file joint. Other then our rental income, we also do lawncare on the side. Not incorporated but as a DBA. We did pretty good this summer off and on but didn't advertise much. Next summer we plan to continue to grow our own lawn business and he will not work for the company. Since my husband will not be working for much longer with the company, would that even qualify to open a Roth? Or would the small amount we made off lawncare qualify us? I may open both a Roth and traditional, one in my name and other in his.
Yes, I realize the cons of going with a banks financial advisor. It mostly happened because at the time I worked there and didn't know a whole lot about it all.
So, currently there's $1700 in the IRA, I plan to move it and add some to it, at least making it $2000. So with vanguard, as was mentioned, I could open an IRA and use ETFs (which has no fee right? Or at least not all do if I've read correctly) plus contribute until I have more money to meet their requirements?
Or, would it be better to look elsewhere? I just want a simple site to use, lowest fees possible and something that offers diversity/options. Of course good customer service as well.
To buy etfs, you need a brokerage account. To open a brokerage account, you need 3k.
Another option is the fine Vanguard Target Retirement funds. The minimum for those is 1k. Vanguard's TR funds are invested in Vanguard's index funds. The expense ratio is slightly higher than etfs, but still rock bottom. I use the TR 2030 fund myself. Take a look at them here:
We do file joint. Other then our rental income, we also do lawncare on the side. Not incorporated but as a DBA. We did pretty good this summer off and on but didn't advertise much. Next summer we plan to continue to grow our own lawn business and he will not work for the company. Since my husband will not be working for much longer with the company, would that even qualify to open a Roth? Or would the small amount we made off lawncare qualify us? I may open both a Roth and traditional, one in my name and other in his.
The lawncare certainly qualifies as earned income. Once there is no more w-2 income, you will be limited by the amount of lawncare income. For example, if you have 10k of net income from the lawncare, then you may contribute no more than 10k in total to your IRAs.
This is not true, you can buy ETF's inside an IRA account. Many people (myself included) hold ETF and individual stocks in their IRA's.
It it's true. An Ira can also be a brokerage account if it is held by a brokerage firm. If you are buying securities such as etfs it's being handled by a brokerage firm
FWIW, there are certain mutual funds that you need a minimum dollar requirement. The requirement for my target retirement plans are all $2,000. Obviously you should have no problem meeting that if you add to your 1700, just thought I would mention it.
It it's true. An Ira can also be a brokerage account if it is held by a brokerage firm. If you are buying securities such as etfs it's being handled by a brokerage firm
True, I forgot you can get IRA "certificates" which are basically CD's from Banks/Credit Unions...
This is not true, you can buy ETF's inside an IRA account. Many people (myself included) hold ETF and individual stocks in their IRA's.
Yes, it is true. To buy mutual funds, you do not need a brokerage account. To buy etfs, stocks, individual bonds, or other securities traded on the markets, you must have a brokerage account.
A brokerage account can be held inside an IRA, or outside of an IRA.
Yes, it is true. To buy mutual funds, you do not need a brokerage account. To buy etfs, stocks, individual bonds, or other securities traded on the markets, you must have a brokerage account.
A brokerage account can be held inside an IRA, or outside of an IRA.
See the statement above your last one. I was referring the assumption that an IRA exists in a brokerage acct, not a CD/Mutual Fund/etc...
I moved $1.2 million from a "managed account" with a financial advisor to Fidelity. Did my home work and presented to them where I felt the money should go. I am talking about savings, IRA's, 529 etc. Very pleased with the transactions. At year end I will check the fees which I assume will be much lower and get back to everyone.
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