Author Topic: Roth IRA Advice?  (Read 1741 times)

BriArrange

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Roth IRA Advice?
« on: January 02, 2015, 01:44:26 PM »
I've just recently found this site, and since then, I have opened an HSA account, paid of 1 of 3 student loans, and and now am in search of opening a Roth IRA. But I would like some advice since I am very new at all of this....

Where is the best to open a Roth IRA?
I don't have a lump sum saved up yet to meet some of the minimums required, but I have done some researching and I know some places such as Fidelity and ETRADE do not require a minimum amount and allows me to make monthly automatic payments. Are these recommended? If not, where else can I do this that is a better choice?


Any advice is greatly appreciated. :)

Jags4186

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Re: Roth IRA Advice?
« Reply #1 on: January 02, 2015, 01:48:08 PM »
I've just recently found this site, and since then, I have opened an HSA account, paid of 1 of 3 student loans, and and now am in search of opening a Roth IRA. But I would like some advice since I am very new at all of this....

Where is the best to open a Roth IRA?
I don't have a lump sum saved up yet to meet some of the minimums required, but I have done some researching and I know some places such as Fidelity and ETRADE do not require a minimum amount and allows me to make monthly automatic payments. Are these recommended? If not, where else can I do this that is a better choice?


Any advice is greatly appreciated. :)

I use TD Ameritrade. You can buy tons of Vanguard ETFs commission free through them--I buy 2 or 3 shares of VTI every week and there are no fees whatsoever!  I think you can open it up with $100. 

Gone Fishing

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Re: Roth IRA Advice?
« Reply #2 on: January 02, 2015, 01:57:04 PM »
Is early retirement a goal for you?  If so, a traditional IRA or a blend may be better than 100% Roth.  What is your current tax bracket?  Do you have access to a 401(k) with matching?

BriArrange

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Re: Roth IRA Advice?
« Reply #3 on: January 02, 2015, 02:05:20 PM »
Thanks for your guy's help and advice! I do not have access to a 401K, but my husband does with matching...so we have been puting as much as we can into it. But we don't want to solely rely on his 401K. So, I am planning on opening up an IRA account.

Or is this unneccessary? 

Early Retirement is a goal for me...but my husband, who is an engineer and farmer, plans on working for as long as he can.

Cwadda

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Re: Roth IRA Advice?
« Reply #4 on: January 02, 2015, 02:55:27 PM »
I assume your husband is contributing the max $18,000 per year. It might be better for you to do the Traditional IRA for now so you can get the tax break now and then later use a Roth conversion ladder once you are near FI to get many years of tax free growth.

Gone Fishing

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Re: Roth IRA Advice?
« Reply #5 on: January 02, 2015, 03:02:02 PM »
If your husband plans on working forever, it is probably a toss up between the ROTH and Traditional in the long run.  Assuming he is funding a traditional 401(k) at work, the ROTH will provide some additional tax diversification.  Be aware that you can "recharacterize" and change IRA contributions from one to another within a certain time frame.  This can be very useful if you have a very good (favor the traditional) or very bad year (favor the ROTH) on the farm.