UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: Retirement Investment Question Date: 12/24/2001 5:24 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Author: Anjanettea Date: 12/24/01 2:10 PM Number: 32896
Currently, I have XOM, GE, KO, INTC & MO (waiting for INTC & MO to be established through Temper of the Times). I just rolled over my 401K into a Rollover IRA with Vanguard (VFINX). I spoke with my mom's financial advisor. He recommended that I consider transferring the Rollover IRA into a ROTH for tax purposes (which I am considering) at the beginning of the year.

Since your income level is currently very low, the ROTH makes a lot of sense. You'd be taxed on any money you roll, but if you don't roll too much, it will be taxed at a very low tax rate. You can roll a little over each year you're in law school and take full advantage of your situation. Once you get out of law school, and begin earning the big bucks, your tax rate will skyrocket, so now is the time to roll it to the Roth.

My one question, since I already have an IRA established, should I open a ROTH IRA account (with Vanguard or Discount Brokerage Firm and if I do open the ROTH account, what should I consider investing in? I was considering SPY, but I have since changed my mind.

It really doesn't matter where you open the Roth as long as you open it. You can always move it later if you're not happy with your choice.

It is hard to beat SPY in a brokerage, or VFINX at Vanguard, over the long term. Since you're young, I think you'd do very well with a long term indexed approach with an ultra-low expense ratio (like SPY and VFINX).

RK
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement