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Hi all,

Sorry for some newbie questions. I have read as much of the 13 steps, and retirement board as I can, but still am unsure I understand.

Some basics: 35 years old. Divorcing soon. No house or savings. $25,000 in CC debt. Active duty military for 3.5 more years until retirement. (Roughly $1000./month forever (3.8% COLA/year) in retirement pay) Planning on starting new career in computer industry.

I have just gotten a good sized inheritance, which will allow me to pay off all my CC debt. I will have a savings emergency fund, in a 6%+ account, and I now want to start Foolishly saving! Both for retirement, and house etc in the future. I will have around $1100.00 more a month than usual. I suppose I want to open both a Roth IRA, and start regular investing. (A Foolish calculator told me Roth IRA would have better return in retirement than regular) So, some questions:

1. How do I open a Roth IRA? Do I just use a broker/investment firm (ie Charles Schwab) and they handle it?

2. Maximum contribution is $2000.00 a year, right? Can I still put in $2k for 2000 prior to 4/16, as well as put in $2k for 2001 at the same time?

3. Anything else I can do for retirement, now? (Other than making sure my new career job has pay matching 401k...) Other accounts of IRA type I can open as well?

4. Would it be smart to take care of this stuff first, then calculate the rest of my available money to invest in MMF, stocks, etc?

5. Anything else you think I am not considering, need to know, etc?

Sorry for the length and probable extreme basicness of these questions. Thanks in advance for any and all responses.

KXMc
kxmc@msn.com
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