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What do you mean " a good deal"??? With any sort of substantial balance most reputable firms will waive any custodial fees -- Our Money: No more Roth IRA custodial fees (http://newagepf.blogspot.com/2005/08/no-more-roth-ira-custodial-fees.html - broken link)
Or are you talking about about ongoing trading costs?
Here are some questions I have regarding Roth IRA's:
Are Roth IRA's more or less just a savings account that has a fixed interest rate?
How exactly does a Roth IRA work? I guess every year you contribute as much as you can in the IRA all the way up to the 5K max?
Are IRA's that are provided through firms such as Scottrade insured through the FDIC? If I had a Roth IRA with Scottrade and Scottrade went out of business, would I get my IRA contributions back?
In your opinion, which IRA is better? Roth or Traditional?
Here are some questions I have regarding Roth IRA's:
Are Roth IRA's more or less just a savings account that has a fixed interest rate?
How exactly does a Roth IRA work? I guess every year you contribute as much as you can in the IRA all the way up to the 5K max?
Are IRA's that are provided through firms such as Scottrade insured through the FDIC? If I had a Roth IRA with Scottrade and Scottrade went out of business, would I get my IRA contributions back?
In your opinion, which IRA is better? Roth or Traditional?
A Roth IRA is a mutual fund with special tax treatment for retirement funds and while you CAN put money into a fixed account you generally don't want to. They are subject to market conditions.
With a Roth you put money into the account after tax (meaning it is your take home pay) then the money grows tax free and comes out tax free in retirement.
They are NOT insured in any way.
I would suggest you contact an investment advisor-a non-fee based one so you don't get stuck paying a high annual fee--and get some help on getting this started.
As for which is best, it really depends on your financial situation and your income as there are income limits to contribute to a Roth.
A Roth IRA is a mutual fund with special tax treatment...
A Roth IRA is NOT a mutual fund, it's an ACCOUNT (with special tax treatment). Within that account you can hold mutual funds, stocks, bonds, CDs, whatever.
Quote:
They are NOT insured in any way.
Well, there is protection depending on where you hold the Roth. If it's with a brokerage, then you're covered by the SIPC. If the Roth is invested in a deposit account with a bank, you're covered by the FDIC.
IMO, Roths are generally superior to traditional IRAs for a few reasons (not that they're better for EVERYONE), but I don't have time to expound on that right now. I'd recommend Googling Roth vs. traditional IRA as a start.
Any IRA Roth or non-Roth is a TAX DEFERRED Investment vehicle.
Not to get picky, but a Roth is really tax-FREE, not tax-deferred. You never pay tax on the gains (assuming you stick to the rules). A traditional deductible IRA is tax-deferred, because tax is delayed on both principal and gains until you eventually take qualified distributions.
It is probably more accurate to use the term "tax advantaged" or "governed by the rules of the Tax Code" --- the money INSIDE a Roth can currently grow and be withdrawn without taxes, but getting th money into the Roth will be an after tax thing and converting from a regular to a Roth will incur taxes.
If you are thinking about doing this realize that the reason the government is promoting this is to get taxes NOW instead of in the future, which might not be a smart thing for you...
Ok, yes, technically a ROTH is an account but the majority of the people use a mutual fund with the Roth and more people understand what mutual funds are so explaining it is easier.
It is not fully tax free, if you do not pay taxes while contributing, you will have to pay later, when you will be withdrawing your savings. The most relevant information you will find here.
[url=http://iraroth.org/]Roth IRA[/url]
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