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Subject:  Re: Help with Roth Ira Date:  2/18/2010  11:01 PM
Author:  BruceCM Number:  66766 of 98909

You're really asking two questions.

As to starting a Roth IRA, you can do this with any IRA custodian, including mutual funds, banks, insurance companies or a brokerage.

After you set up the Roth IRA, you can contribute to it, in cash, up to $5,000 per year, plus another $1,000 if you are 50 or older in the year you make the contribution for. You have up until April 15th in 2010 to set up and contribute to a Roth IRA for 2009. The only catch here is that you must have earned income (from salary or wages or from self employment income) that at least equals the amount you contribute.

If you wish to invest in Vanguard mutual funds, you'd probably be best served to open your Roth with Vanguard, as other IRA custodians will likely charge you to purchase Vanguard funds, as Vanguard generally does not pay other brokerages/banks/insurance companies to offer their funds.

As to which mutual fund, it depends on your investment objective. Is this for long-term savings? Medium term? Short term? If this is for your retirement years (which is the most common, but not only, reason), you would probably be better off to invest in Vanguard "target date" retirement mutual funds, where the target date on the fund equals (approximately) your projected retirement date. This kind of fund will rebalance towards more conservative investments as you approach this retirement year.

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