Author Topic: Roth IRA question(s)  (Read 2531 times)

WootWoot

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Roth IRA question(s)
« on: October 16, 2016, 01:33:55 PM »
Hello--
I have come into some money recently and would like to open a Roth IRA. I already have a 403(b) through my employer, who uses TIAA-CREF. Of course the CREF adviser that works with my employer suggested I open my Roth with them.

I have heard good things about Vanguard and some other companies. My question is: Is it advisable to have my Roth IRA with another firm other than CREF? It seems to me that going with CREF for everything is putting all my eggs in one basket.

I don't know a lot about the market or investing, just as an FYI.

Thank you!

Frankies Girl

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Re: Roth IRA question(s)
« Reply #1 on: October 16, 2016, 01:56:32 PM »
There are no issues whatsoever in having accounts in several locations, or having all of them with one group, as long as the company(ies) you choose have a long-standing good reputation like Vanguard or Fidelity or such. All financial groups offer some form of coverage similar to FDIC for banks to protect your account (sponsored independent federally backed groups not affiliated with the actual financial groups), and the idea of having all accounts in one place (eggs in one basket fears) is pretty much unfounded for companies like Vanguard or Fido.

As you admit you don't know anything about investing, I'd recommend you read Jim Collins' book "The Simple Path to Wealth" or check out his stock series (the book is based on this website series):

http://jlcollinsnh.com/stock-series/

He even discusses the whole eggs/basket thing in one chapter: http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/

I would definitely take some time to understand how to invest first before going forward. It's okay to let money sit in a savings account for a month or two while you figure out how things work and what your game plan for the money should be. For instance, an IRA - traditional or Roth - can only be funded each year to the max of $5,500 currently. If you have inherited significantly more than this, you'll need to figure out how to best get that money invested in the most efficient way. While it was suggested that you open a Roth IRA, it might be better to go with a traditional IRA; can't tell from the information given as it's all based on your future goals, your current income/financial situation. 

You can also post details (case study) and discuss other account options on this forum (there are a wealth of amazingly savvy investors and money managers on here and all are willing to help you without any ulterior motive, unlike your CREF rep). ;)

« Last Edit: October 16, 2016, 03:53:11 PM by Frankies Girl »

WootWoot

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Re: Roth IRA question(s)
« Reply #2 on: October 16, 2016, 02:55:54 PM »
Thank you! That link is very helpful. :)

Metric Mouse

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Re: Roth IRA question(s)
« Reply #3 on: October 23, 2016, 11:50:41 PM »
Hello--
I have come into some money recently and would like to open a Roth IRA. I already have a 403(b) through my employer, who uses TIAA-CREF. Of course the CREF adviser that works with my employer suggested I open my Roth with them.

I have heard good things about Vanguard and some other companies. My question is: Is it advisable to have my Roth IRA with another firm other than CREF? It seems to me that going with CREF for everything is putting all my eggs in one basket.

I don't know a lot about the market or investing, just as an FYI.

Thank you!

Compare the offering with Vanguard's expense ratios.  ERs are one of the aspects of investment returns you can control, and lower is better. (on expense ratios, not returns)

WootWoot

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Re: Roth IRA question(s)
« Reply #4 on: October 24, 2016, 12:40:05 PM »
Where do I find the expense ratio on my 403(b)? I am looking over the last quarterly report right now and don't see anything.

EDIT: I think there isn't one. Am I right that they apply to mutual funds?
« Last Edit: October 24, 2016, 12:43:53 PM by WootWoot »