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Author: cdr46 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Roth; too many choices! Date: 8/24/2001 1:54 PM
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Dear PuterLady

In response to your additional information:
You say:

"Take charge! Eventually!:-)"

Definitely read:
"The Armchair Millionaire"
http://www.armchairmillionaire.com/
"The Coffehouse Investor"
http://www.coffeehouseinvestor.com/
"What Wall Street Doesn't Want You To Know"
http://www.bamservices.com/read.html
"24 Essential Lessons for Investment Success", by William J. O'Neil
http://www.investors.com/
For the IRA, for the most part I want to get it up and running now, and pretty much stick with "passive mutual funds" for this investment at least.

I like www.vanguard.com - but further information on index funds can be found at: http://www.indexmutualfunds.com/

Re: ROTH versus traditional IRA

Some people combine the two to take partial advantage of the tax deductibility of the traditional IRA. Finding the correct mix I leave to you. I don't worry about what the tax rates will be in the unknown future. Take advantage of what is offered today. Remember Congress can and has changed the tax law - often retroactively.


You write:

"Have been participating for 20 years in a nice little plan called "SURS", State Universities Retirement System. This is a 401k plan that matches my contributions. I will ALSO finally be getting into the 403b plan before the year is over, as well as starting the Roth IRA on my own. I've paid virtually nothing into Social Security, so I've GOT TO get my a** in gear here!! (Not that SS would save me from a retirement in poverty!)
The 403b lets us choose between 5 companies; Fidelity, American Century, TIAA-CREF, Aetna and MetLife. 3 have annuities which I DON'T want. The other two are Mutual Fund plans, and because the list of selected funds is only a couple dozen for each company, it shouldn't be nearly as hard to choose as the Roth is proving to be for me."

Congratulations. If you are not maxed out - do so. Any matching funds is "found" money and an instant return on your money.

You might want to seek further guidance at the following web sites:

http://www.financialengines.com/
http://www.stanford.edu/~wfsharpe/
http://www.403bwise.com/
http://www.efficientfrontier.com/

You're young and if you play your cards right you can retire well before the age of 65.

You write:
"Earlier would be better, but 65 is basically an acceptable age for me."

You are young and if you play your cards right you can retire well before the age of 65. Make sure you read the book "Retire Early", by John F. Wasik and check out this web site:

http://www.geocities.com/WallStreet/8257/reindex.html

You write:
"So, I've got 22 years to amass a small fortune. I don't have any credit card debt, I do own a home with a mortgage that I am paying additional principal on each month, and I've got no dependents to worry about. Next year, some good old US Savings Bonds will mature, and I'll have that money to use for some more investing at that time. Hopefully, I'll know more then than I know now."

You might also want to read the following books:
"Ordinary People Extraordinary Wealth", by Ric Edelman
www.ricedelman.com Read his alternative opinion about the "wisdom" of not paying down a mortgage - I agree with him
"The Millionaire Next Door", by Thomas J. Stanley & William D. Danko
"The Million Dollar Car and $250,000 Pizza", by Allyson Lewis

I would suggest that anyone who takes the time to read the above books and research the above web sites AND follows through with a PLAN OF ACTION will be successful in their financial goals - assuming they don't procrastinate.

You have the key element of investment success on your side - time.

Good Luck

cdr46
Learn to earn
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