No. of Recommendations: 1
Yes, a Roth IRA is a good idea. I would go directly with Vanguard though and bypass the discount broker. Just keep it simple and put it into a broad-based index fund like Vanguard Total Stock Market Index (VTSMX) or S&P 500 Index (VFINX). Open with the account min. (or whatever you can afford) and then dollar-cost-average in year after year. After you get plenty invested you can put some (say 20% into a Total Bond Index) if you feel it is necessary (I don't right now)

My advice: stay with index funds. You could beat most everyone doing this. You could go the rest of your investing life with JUST the Total Stock Index and the Total Bond Index.


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