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
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