i am thinking about opening up an roth ira with xom. first, i am definitely going to start a roth, just been debating on where. i thought about with my broker but tend away from that - i'll probably end up trading it too much. at the the same time i don't think i want to do an index fund (i do that thru my 401k) - i'd like to do a little better than that but at the same time be "safe". i think xom fits that and i like the idea of the dollar cost avg benefits of a drip. first has anyone out there done this? also is xom the right choice? i think it is. they're not going anywhere, over the last 20 years they've beaten the s&p and i assume they will continue to do so over the long term. that's all i am looking for. i want to set up my monthly deduction and forget about it until i am 60 (i am 32 now). no matter what happens with "gas/oil/fuel" in the future i think xom will be there. any one have any thoughts, insights, advice?thanksthynnus
First off, the standard warning--DON'T TAKE ANYONE'S ADVICE. DO YOUR OWN RESEARCH AND FINE THE INVESTMENT THAT'S RIGHT FOR YOU.Having said that, XOM in a Roth is an idea that rocks. Great company, friendly drip plan, good dividends, and you won't have to pay any taxes on it later on. That's cool.T
I posted the same concern not too long ago. Most people provided a good case that XOM itself was a lasting company, but most still felt an IRA with a single company, even XOM, was poor strategy. Realize, you can have more than one roth IRA, but if you don't max it out (or nearly so) with XOM, the fees are too steep. Someone also suggested that dividends might be hard to collect (i.e. by themselves, if that's what you want to live on) out of a roth when the time comes. I don't know if that's a legitimate concern.
i just looked at some of the other posts. i think i am pretty well rounded in terms on my investments. my 401k gets 10% (index fund)of my salary. i drip pfe and ge, and also own some riskier/higher growth potential stocks. the roth/xom drip isn't going to be my only retirement vehicle, but rather a part. i have about 30 years until that time and i hopefully i will only be able to contribute to the roth for about 10 more years (if my salary gets above the limitations). i just want to put my money somewhere and more or less forget about it. if i did the roth thru my broker i would be tempted to hit a tax free home run by investing in riskier companies and making numerous trades - i'd probably eventually blow the whole thing- i just want something safer and that will still give a decent return. i have the high growth covered with my individual picks and a broader base with my 401k. i am most likely going to do this unless i am overlooking something.
Blissfarm,Are you suggesting that to invest your ROTH IRA money in the same company every year would be a bad idea or to invest your $2000 for one year in the same company is a bad idea? I always choose one company per year and put the entire amount in that company. Of course, I pick a different company each year and am not DRIP investing. If you feel that XOM is a good company, you could at least use it for a DRIP for one year. It would be nice if there were more Roth IRA option with drips.Audiolady
Blissfarm,Are you suggesting that to invest your ROTH IRA money in the same company every year would be a bad idea or to invest your $2000 for one year in the same company is a bad idea? I always choose one company per year and put the entire amount in that company. Of course, I pick a different company each year and am not DRIP investing. If you feel that XOM is a good company, you could at least use it for a DRIP for one year. It would be nice if there were more Roth IRA option with drips.Audiolady ----------------Quite honestly, I am not experienced enough in the topic to give advise on financial matters, so I don't feel comfortable responding directly to financial questions. My prior response was intended primarily to pass along the feedback I'd received when I asked essentially the same question. But since you ask, I suppose the answer depends on the company (or companies) in question. Of the two options you pose... the concept of investing $2000 in a single company every year seems a little risky to me. But then again, I'm not one to assume a lot of risk; whereas others might, and might profit well from doing so. (Or not.) As for your general approach of investing in a single company for a year, I think that's a fine idea, provided the company is a good one. And I think XOM is a good one. But as I said, I'm not one to take seriously when it comes to investing. As to the original posters feelings, I appreciate where they are coming from. I too am fairly well diversified when everything is considered outside of the Roth. Nonetheless, as the Roth is such an important component of the total package, I'm inclined not to go with a single company for all time. XOM has historically been great. But it's a potentially risky company in my opinion. Here too, I'd take a lot of flack from those that defend XOM, but my gut (admittedly, not a particularly scientific indicator) tells me there's lots of things that could go wrong there. For these reasons (and the custodial fees vs. what I could put into it at the moment), I backed off my own plans to go with XOM for my Roth, though I do consider it a valued Drip, and may someday myself use it for a Roth, at least for a while.
I just set up a Roth/DRIP with XOM for my wife. Got all the paperwork from their web site. Seemed pretty easy. I'm still waiting to here back from them.
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