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Investing/Strategies / Retirement Investing
|Subject: Re: Roth IRA||Date: 10/25/1998 2:05 PM|
|Author: TMFPixy||Number: 6275 of 77231|
Greetings, Raster, and welcome. You asked:
<<i will max out my 401K for this year. I want to invest
an additional $2000 in the Roth IRA........
My question is :
1. Where do I get the Roth IRA ? Do I have to buy it at
the bank, or some mutual fund company ?
2. What r the annual return percentages in the Roth
Roth IRAs are available at the vast majority of brokers, mutual funds, banks and insurance companies. You will have to obtain one at an authorized provider, but that's relatively easy given the sources available. However, you seem confused as evidenced by your second question. A Roth IRA (or any IRA for that matter) is not the investment itself. Think of it as a paper sack. Just as one of those holds your various purchases at a store, an IRA holds your various investments, and it does so in a tax-deferred vehicle. The investment can be pretty much what you choose from annuities to mutual funds to individual CDs, bonds, stocks and the like. Thus, the return you get is solely contingent on how you invest your money. In that respect, it's no different than your 401k. The ultimate growth there also depends on the type of investment you make.
You appear new to investing and to Fooldom as well. That's great on both counts. You have wandered into a forum that believes you, as an individual, can do far better for yourself than most professional money managers. Provided, that is, you take some time to learn a few basic investment concepts and do some self-examination to see where you fit on the risk tolerance scale. Therefore, why not take some time now -- not later -- to be sure about what you want to do. Start first by reading The 13 Steps to Investing Foolishly, which you can access from the main, opening screen to The Motley Fool. They will suggest some important things you should consider. Then I suggest you toddle over to your local library, discount bookstore, or even here in the Fool Mart, and pick up some easily read, easily understood, inexpensive texts that will thoroughly explain how to invest in stocks using some simple systems that will take but an hour per year of your time (if you're slow) yet produce returns that put the majority of professional money managers to shame. I suggest and commend the following to you: "Beating the Dow" by O'Higgins; "The Dividend Investor" by Petty and Knowles; "The Motley Fool Investment Guide" by the Gardner brothers; "One Up on Wall Street" by Lynch; and "What Works on Wall Street" by O'Shaughnessey. All are well worth their low cost and the small investment in time it takes to read them. Get them and read them. You'll be glad you did.
While you're doing all that, also take some time to explore the various nooks and crannies of Fooldom to see what others are doing and what they're discussing. In the process, you'll gain a wealth of knowledge and information that will serve to clarify how you want to approach this very personal issue. Don't be afraid to ask a question anywhere in Fooldom. Folks around here are great about answering questions and clearing up misunderstandings.
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