Comments on: How to Start a Roth IRA (and Where to Do It) http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Fri, 24 May 2013 02:41:59 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Chris http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-1/#comment-3321487 Chris Sat, 04 May 2013 03:06:05 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3321487 Well, no you don't have to put in $200 on a set schedule. As a matter of fact, if you contact almost ALL of the brokerage/retirement account holders such as Fidelity and Schwab, you'll find that you can open an account with only $5 or $10. You may not be able to invest in specific funds right away, but you can put however much you can afford to in the account. I did this recently with my own brokerage account, and so did a nephew of mine. Well, no you don’t have to put in $200 on a set schedule. As a matter of fact, if you contact almost ALL of the brokerage/retirement account holders such as Fidelity and Schwab, you’ll find that you can open an account with only $5 or $10.
You may not be able to invest in specific funds right away, but you can put however much you can afford to in the account.
I did this recently with my own brokerage account, and so did a nephew of mine.

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]]> By: Jennifer http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3302523 Jennifer Sat, 23 Mar 2013 14:13:07 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3302523 Thank you! This was very helpful!! Thank you! This was very helpful!!

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]]> By: L T http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3276722 L T Mon, 04 Feb 2013 19:03:14 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3276722 I started a Roth IRA at Scottrade with only $500 on the advice of my boss who was formerly a broker. He gave me a coupon code (SLUK8981, no expiration date and anyone can use it) to get 3 free trades. (He also gets free trades when code is used - referral reward). Instead of investing in a fund I just purchase stocks on sale. I like the control and I am doing ok even tho my knowledge of stocks is linited. The low barrier to entry was key in getting me started and now I am enjoying working within my account tax free. I started a Roth IRA at Scottrade with only $500 on the advice of my boss who was formerly a broker. He gave me a coupon code (SLUK8981, no expiration date and anyone can use it) to get 3 free trades. (He also gets free trades when code is used – referral reward). Instead of investing in a fund I just purchase stocks on sale. I like the control and I am doing ok even tho my knowledge of stocks is linited. The low barrier to entry was key in getting me started and now I am enjoying working within my account tax free.

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]]> By: David Foster http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-1/#comment-3268562 David Foster Thu, 31 Jan 2013 22:32:56 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3268562 How do you find a good company to do the self directed Roth IRA? I like to deal with real estate, tax liens & tax deeds. Thanks How do you find a good company to do the self directed Roth IRA? I like to deal with real estate, tax liens & tax deeds. Thanks

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]]> By: Cristao http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3252812 Cristao Thu, 24 Jan 2013 19:21:28 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3252812 God, I just checked and your are right… Being new to all this i have been concentrating on some topics and not another like comparing expense ratios. But i am learning!! Question, I do not have the $3K Vanguard requires for the Balanced fund for example, and i have another 2 Funds, the Equity 500 and some moeny on Treasury Money. I would have to wait to have that amount to be able to go with Vanguard. Is theres a penalty to take my investments out of T Rowe at any moment and move them to Vanguard? How does that process work? (Changing firms)? Thank you so much! God, I just checked and your are right… Being new to all this i have been concentrating on some topics and not another like comparing expense ratios. But i am learning!! Question, I do not have the $3K Vanguard requires for the Balanced fund for example, and i have another 2 Funds, the Equity 500 and some moeny on Treasury Money. I would have to wait to have that amount to be able to go with Vanguard. Is theres a penalty to take my investments out of T Rowe at any moment and move them to Vanguard? How does that process work? (Changing firms)? Thank you so much!

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]]> By: Jason http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3166162 Jason Thu, 20 Dec 2012 18:29:03 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3166162 Most of the commissions and fees quotes in this article are outdated, and as of a few weeks ago Zecco no longer exists (merged with TradeKing). Definitely time for an update :) In comparing your options, Schwab is also worth a look. My previous employer's 401k was with Schwab and I chose to stick with them after shopping around. IRAs have no annual fee (long as you set up monthly ACH deposit or initial deposit of $1,000) and they have a good selection of $0 commission Schwab ETFs with the lowest management fees that I can find (0.04% up to maybe 0.50% on the high end). If all you want is a few ETFs to diversify while paying as little as possible in the process, they'll be tough to beat. Most of the commissions and fees quotes in this article are outdated, and as of a few weeks ago Zecco no longer exists (merged with TradeKing). Definitely time for an update :)

In comparing your options, Schwab is also worth a look. My previous employer’s 401k was with Schwab and I chose to stick with them after shopping around. IRAs have no annual fee (long as you set up monthly ACH deposit or initial deposit of $1,000) and they have a good selection of $0 commission Schwab ETFs with the lowest management fees that I can find (0.04% up to maybe 0.50% on the high end). If all you want is a few ETFs to diversify while paying as little as possible in the process, they’ll be tough to beat.

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]]> By: Sophia http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3149922 Sophia Sun, 16 Dec 2012 06:15:19 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3149922 I was searching for information to start a Roth IRA. The article and all the comments are very informative. I was searching for information to start a Roth IRA. The article and all the comments are very informative.

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]]> By: S.Otterstein http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-3019292 S.Otterstein Sat, 29 Sep 2012 14:55:38 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-3019292 Great article! Thank you for it. I just went to T.RowePrice.com to try and open a Roth IRA. The minimum balance amount for free of annual charge accounts is $10,000 otherwise you always pay $20 plus $20 if you close the acct. (there may be more fees, I have not discovered yet). And you have to agree to delivery of all material through email (paperless), which I do not like so much. Just an update, but maybe somebody posted this already in between (could not read all 223 comments). Great article! Thank you for it. I just went to T.RowePrice.com to try and open a Roth IRA. The minimum balance amount for free of annual charge accounts is $10,000 otherwise you always pay $20 plus $20 if you close the acct. (there may be more fees, I have not discovered yet). And you have to agree to delivery of all material through email (paperless), which I do not like so much. Just an update, but maybe somebody posted this already in between (could not read all 223 comments).

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]]> By: Robert http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-2997052 Robert Sun, 16 Sep 2012 23:27:51 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-2997052 Sharebuilder charges no fee for a Roth IRA...despite what someone says on here. Sharebuilder charges no fee for a Roth IRA…despite what someone says on here.

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]]> By: Jeff Coga http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-1/#comment-2921442 Jeff Coga Wed, 08 Aug 2012 04:41:48 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-2921442 Make sure to look into using self directed ROTH IRA funding real estate transactions. You can explode your account with the right strategies - leveraging real estate. Example... 1. Buy, fix, and sell it for profit 2. Buy, fix, and rent them out and hold it 3. Lend money to developers who do #1 and 2 Jeff Coga Make sure to look into using self directed ROTH IRA funding real estate transactions. You can explode your account with the right strategies – leveraging real estate. Example…

1. Buy, fix, and sell it for profit
2. Buy, fix, and rent them out and hold it
3. Lend money to developers who do #1 and 2

Jeff Coga

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]]> By: Shaun http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-1/#comment-2890692 Shaun Thu, 26 Jul 2012 13:26:22 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-2890692 I thought you could pull the original money out of the Roth whenever you wanted tax free (since technically you've already been taxed on that money). I thought that was like the big benefit of the Roth. So if that's the case doesn't this just make a Roth a really awesome savings account? I thought you could pull the original money out of the Roth whenever you wanted tax free (since technically you’ve already been taxed on that money). I thought that was like the big benefit of the Roth. So if that’s the case doesn’t this just make a Roth a really awesome savings account?

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]]> By: meghan http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-2589662 meghan Sun, 15 Apr 2012 14:07:17 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-2589662 Can we open a Roth or Traditional IRA for our kids? Is there any kind of tax write off for that? Can we open a Roth or Traditional IRA for our kids? Is there any kind of tax write off for that?

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]]> By: Financial advisor http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-2473252 Financial advisor Tue, 13 Mar 2012 12:08:52 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-2473252 Discount brokers and full-service brokers charge fees on every trade into a stock, ETF, bond, or mutual fund. These brokers will tout no-fee mutual funds (also called no-transaction fee mutual funds) to show that they aren’t out to make a buck on every transaction you have for retirement. The easiest way to avoid unnecessary fees on your mutual funds is to simply cut out the middleman. You don’t need 10,000 different mutual funds nor do you need to pay for every transaction you have to buy or sell into those funds. A well constructed portfolio of low cost index funds can offer you the best returns at the lowest cost. Discount brokers and full-service brokers charge fees on every trade into a stock, ETF, bond, or mutual fund. These brokers will tout no-fee mutual funds (also called no-transaction fee mutual funds) to show that they aren’t out to make a buck on every transaction you have for retirement. The easiest way to avoid unnecessary fees on your mutual funds is to simply cut out the middleman. You don’t need 10,000 different mutual funds nor do you need to pay for every transaction you have to buy or sell into those funds. A well constructed portfolio of low cost index funds can offer you the best returns at the lowest cost.

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]]> By: Greg http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-1421442 Greg Wed, 18 May 2011 14:16:24 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-1421442 Great article...many thanks. It really answers all the questions one would ask in regards to opening up a Roth IRA. Very informative. Great article…many thanks. It really answers all the questions one would ask in regards to opening up a Roth IRA. Very informative.

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]]> By: Matt Davis http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-578951 Matt Davis Thu, 15 Jul 2010 23:56:31 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-578951 This sounds perfect. I'm 18, and just a temporary employee for now so I have no 401k benefits, so I'll be sure to fund my ROTH IRA instead. Thanks for the links! This sounds perfect. I’m 18, and just a temporary employee for now so I have no 401k benefits, so I’ll be sure to fund my ROTH IRA instead.

Thanks for the links!

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]]> By: Patrick Szalapski http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-438191 Patrick Szalapski Thu, 06 May 2010 18:43:09 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-438191 Michelle, many say to check it only quarterly, which is good if you are prone to too much tinkering. You don't want to be tempted to become reactionary. The great thing about a "lazy" portfolio is that it is never bad and you should make changes when you've learned more about the investment philosophy you want, not when news happens or when it goes up or down. The STAR fund is very conservative and balanced, so it is certainly okay to start there with 100% allocation. As you learn more, you can decide when to move a portion into other funds. Perhaps the Vanguard Target Retirement 20xx funds are the next ones you should consider? Michelle, many say to check it only quarterly, which is good if you are prone to too much tinkering. You don’t want to be tempted to become reactionary. The great thing about a “lazy” portfolio is that it is never bad and you should make changes when you’ve learned more about the investment philosophy you want, not when news happens or when it goes up or down.

The STAR fund is very conservative and balanced, so it is certainly okay to start there with 100% allocation. As you learn more, you can decide when to move a portion into other funds. Perhaps the Vanguard Target Retirement 20xx funds are the next ones you should consider?

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]]> By: Michelle http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-438121 Michelle Thu, 06 May 2010 18:22:10 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-438121 Thanks so much for posting this information! I do my banking with USAA, but I just started a ROTH IRA with Vangauard... I choose the STAR fund, which only has a 1000 initial contribution minimum. It was easy to set up online and took about 15 minutes to go from start to finish. It was also easy for me to set up automatic monthly contributions from my USAA checking account to my ROTH IRA. Much easier to set up than I thought it would be! Wish I hadn't put it off for so long. *QUESTION* for all of you knowledgable people: Now, how often should I log onto the Vanguard site to look at how my ROTH IRA is doing? I picked the STAR fund because it is supposed to be low risk. Do I need to check up on it monthly, yearly? Is it alrigth that I am putting the maximum yearly amount into the STAR fund ($5000)? Thanks so much for posting this information! I do my banking with USAA, but I just started a ROTH IRA with Vangauard… I choose the STAR fund, which only has a 1000 initial contribution minimum. It was easy to set up online and took about 15 minutes to go from start to finish. It was also easy for me to set up automatic monthly contributions from my USAA checking account to my ROTH IRA. Much easier to set up than I thought it would be! Wish I hadn’t put it off for so long.

*QUESTION* for all of you knowledgable people: Now, how often should I log onto the Vanguard site to look at how my ROTH IRA is doing? I picked the STAR fund because it is supposed to be low risk. Do I need to check up on it monthly, yearly? Is it alrigth that I am putting the maximum yearly amount into the STAR fund ($5000)?

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]]> By: Tom B http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-386861 Tom B Fri, 16 Apr 2010 12:18:18 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-386861 For #209 Magayon..."How was their performance these past few months?" With my money in a Roth IRA with Vanguard, invested (for now solely) in their S&P INDEX FUND I am up 9.25% since july 2009. Not as good as picking stocks could have yielded by now, but not shabby for having to do nothing and fairly cheap too (.18% expense ratio). Easy to track performance on this fund. It is very closely tied to the performance of the S&P. When S&P moves up 100 points...the fund moves up (roughly) 100. For #209 Magayon…”How was their performance these past few months?”
With my money in a Roth IRA with Vanguard, invested (for now solely) in their S&P INDEX FUND
I am up 9.25% since july 2009. Not as good as picking stocks could have yielded by now, but not shabby for having to do nothing and fairly cheap too (.18% expense ratio). Easy to track performance on this fund. It is very closely tied to the performance of the S&P. When S&P moves up 100 points…the fund moves up (roughly) 100.

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]]> By: David http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-386051 David Fri, 16 Apr 2010 02:17:24 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-386051 check Kaching.com. If you want to get steady returns then you should find an RIA on KaChing. The fee structure is very low and you get access to some fund managers who usually have million dollar minimum investments. check Kaching.com. If you want to get steady returns then you should find an RIA on KaChing. The fee structure is very low and you get access to some fund managers who usually have million dollar minimum investments.

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]]> By: Mike http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-214780 Mike Wed, 23 Dec 2009 11:09:31 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-214780 If you are lucky enough to work in a company that offers a Roth 401k, you will be that much better off than those with just a regular 401k. If you are lucky enough to work in a company that offers a Roth 401k, you will be that much better off than those with just a regular 401k.

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]]> By: Magayon http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-208575 Magayon Fri, 20 Nov 2009 10:41:17 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-208575 Thanks, Tom..=) Thanks, Tom..=)

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]]> By: Tom http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-207539 Tom Sat, 14 Nov 2009 20:29:56 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-207539 Magayon, Here is USAA's funds >> https://www.usaa.com/inet/ent_utils/McStaticPages?key=mutual_funds_main I read numerous sources on investing and many say the same thing..."...if your new to investing, and/or you don't have the knowledge/inclination/or time to pick stocks, then index funds are the best way to go." I chose Vanguards S&P 500 Index fund to start my Roth IRA. This fund is slightly cheaper than USAA's S&P 500 INDEX MEMBER FUND ..found here >>> https://www.usaa.com/inet/imco_mutualfund/ImFundFacts?action=INIT&fundNumber=0034&fundCategory=IX (check expense ratios) AND I already have an Inherited IRA with USAA (and didn't want all my eggs in one proverbial basket). Good Luck. Tom Magayon,
Here is USAA’s funds >>

https://www.usaa.com/inet/ent_utils/McStaticPages?key=mutual_funds_main

I read numerous sources on investing and many say the same thing…”…if your new to investing, and/or you don’t have the knowledge/inclination/or time to pick stocks, then index funds are the best way to go.”
I chose Vanguards S&P 500 Index fund to start my Roth IRA. This fund is slightly cheaper than USAA’s S&P 500 INDEX MEMBER FUND ..found here >>>

https://www.usaa.com/inet/imco_mutualfund/ImFundFacts?action=INIT&fundNumber=0034&fundCategory=IX

(check expense ratios) AND I already have an Inherited IRA with USAA (and didn’t want all my eggs in one proverbial basket).
Good Luck.
Tom

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]]> By: Magayon http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-207517 Magayon Sat, 14 Nov 2009 11:42:57 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-207517 @ #207. Yes, my husband is in the military and we have our savings and checking accounts with usaa. I've been thinking of finally opening an IRA but i just dunno where to put the money and how to start. (By the way, this is a great post! Thanks) After reading the all wonderfull comments above i'm kind of half decided to go with vanguard. USAA IRA don't have much info about IRA on their website like how much the fee wil be and the likes... So, did they charge you a fee? How was their performance these past few months? Thanks, spivey.. @ #207. Yes, my husband is in the military and we have our savings and checking accounts with usaa. I’ve been thinking of finally opening an IRA but i just dunno where to put the money and how to start. (By the way, this is a great post! Thanks) After reading the all wonderfull comments above i’m kind of half decided to go with vanguard. USAA IRA don’t have much info about IRA on their website like how much the fee wil be and the likes… So, did they charge you a fee? How was their performance these past few months?
Thanks, spivey..

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]]> By: Bill http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-193956 Bill Mon, 24 Aug 2009 19:15:34 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-193956 To Patrick & Tom B.: Here are the RULES for a ROTH IRA: Roth rules As with any government gift, the Roth IRA comes with a few strings attached. First, you can contribute to a Roth ONLY if you have earned INCOME from a JOB. Say you're in school, you're not working and you have a little extra money left over from your student loan or your parents gave you money. You CANNOT put it in a Roth. Also, you CANNOT save more than you made. So if you worked a summer job and made only $3,000, the MOST you could contribute to a Roth would be $3,000. To Patrick & Tom B.: Here are the RULES for a ROTH IRA:
Roth rules
As with any government gift, the Roth IRA comes with a few strings attached. First, you can contribute to a Roth ONLY if you have earned INCOME from a JOB. Say you’re in school, you’re not working and you have a little extra money left over from your student loan or your parents gave you money. You CANNOT put it in a Roth. Also, you CANNOT save more than you made. So if you worked a summer job and made only $3,000, the MOST you could contribute to a Roth would be $3,000.

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]]> By: spivey http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-188921 spivey Thu, 30 Jul 2009 05:06:05 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-188921 If you are eligible to join USAA (if you or a parent are/were in the military), you definitely should. Their Roth IRA minimum investment is $250 and $30/mo ongoing. Using this, I started a Roth IRA when I was 18. Even though I didn't have a lot to put in it the first couple of years, I got a decent start. If you are eligible to join USAA (if you or a parent are/were in the military), you definitely should. Their Roth IRA minimum investment is $250 and $30/mo ongoing. Using this, I started a Roth IRA when I was 18. Even though I didn’t have a lot to put in it the first couple of years, I got a decent start.

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]]> By: Tom B. http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-187664 Tom B. Mon, 20 Jul 2009 18:44:10 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-187664 I can't say for sure whether there would be fees attached to switching companies.Can't find anything to that effect on T. Rowes or Vanguards websites. Anyone else here know???? Only way to know for sure would be to call and ask. Also, compare your other funds...Looks like Vanguard is cheaper on all fronts. But of course, the stipulation being the minimum $$ up front. I'm still searching for a great article on "gone fishing" portfolios. I will post when I find it. I can’t say for sure whether there would be fees attached to switching companies.Can’t find anything to that effect on T. Rowes or Vanguards websites. Anyone else here know????
Only way to know for sure would be to call and ask.
Also, compare your other funds…Looks like Vanguard is cheaper on all fronts. But of course, the stipulation being the minimum $$ up front.
I’m still searching for a great article on “gone fishing” portfolios. I will post when I find it.

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]]> By: Lilly http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-187632 Lilly Mon, 20 Jul 2009 15:10:02 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-187632 Hello Tom, God, I just checked and your are right... Being new to all this i have been concentrating on some topics and not another like comparing expense ratios. But i am learning!! Question, I do not have the $3K Vanguard requires for the Balanced fund for example, and i have another 2 Funds, the Equity 500 and some moeny on Treasury Money. I would have to wait to have that amount to be able to go with Vanguard. Is theres a penalty to take my investments out of T Rowe at any moment and move them to Vanguard? How does that process work? (Changing firms)? Thank you so much! Hello Tom,

God, I just checked and your are right… Being new to all this i have been concentrating on some topics and not another like comparing expense ratios. But i am learning!! Question, I do not have the $3K Vanguard requires for the Balanced fund for example, and i have another 2 Funds, the Equity 500 and some moeny on Treasury Money. I would have to wait to have that amount to be able to go with Vanguard. Is theres a penalty to take my investments out of T Rowe at any moment and move them to Vanguard? How does that process work? (Changing firms)? Thank you so much!

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]]> By: Tom B. http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-187617 Tom B. Mon, 20 Jul 2009 14:22:30 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-187617 Lilly, I am no professional, but I read alot and have been researching index fund investing. I too, am soon to open a Roth. I will probably choose Vanguard. Not sure which funds yet. Both T. Rowe and VG have many very similar funds, but the expense ratios at Vangaurd are less than T rowe.(i.e. T.Rowe balanced fund Expense ratio-.69% compared to .25% for Vanguards same fund see here.... https://personal.vanguard.com/us/funds/snapshot?FundId=0002&FundIntExt=INT ) Personally, I like VG for this reason. It could mean substantial savings in expenses over the long haul.(Although Vanguard usually requires more $$ up front and maybe that's why you chose T.Rowe.) BTW, I don't work, nor have I ever worked, for T. Rowe or Vanguard. I am reading a good book on index funds now.... "All About Index Funds" by Richard Ferri Maybe this could help with your allocating decisions. Good luck Lilly,
I am no professional, but I read alot and have been researching index fund investing. I too, am soon to open a Roth. I will probably choose Vanguard. Not sure which funds yet. Both T. Rowe and VG have many very similar funds, but the expense ratios at Vangaurd are less than T rowe.(i.e. T.Rowe balanced fund Expense ratio-.69% compared to .25% for Vanguards same fund see here…. https://personal.vanguard.com/us/funds/snapshot?FundId=0002&FundIntExt=INT )
Personally, I like VG for this reason. It could mean substantial savings in expenses over the long haul.(Although Vanguard usually requires more $$ up front and maybe that’s why you chose T.Rowe.)
BTW, I don’t work, nor have I ever worked, for T. Rowe or Vanguard.
I am reading a good book on index funds now….
“All About Index Funds” by Richard Ferri
Maybe this could help with your allocating decisions.
Good luck

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]]> By: Lilly http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-187484 Lilly Sat, 18 Jul 2009 14:52:39 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-187484 Im new with the Roth amd investing. I just opened a Roth with T Rowe Price with no initial contribution, however I am contributing $250 a month with their automatic system. My question is this: I am 37 and have no retirement savings nor 401K. I am a freelancer. I want to have some risks with my Roth, (to make up time for the years I didnt save for retirement) but with how things are now in the market i also want to have some safe funds. These are the 3 funds I picked for my Roth: Are there good for me? - Equity Index 500 - $100 month - Balanced Fund - $100 - Treasury Money $50 Are these funds diversified enough for me and are the amounts well distributed?? I will appreciate your comments. I am blind when it comes to investing, but i wanted to start with a roth and not wait any longer. Thank you!! Im new with the Roth amd investing. I just opened a Roth with T Rowe Price with no initial contribution, however I am contributing $250 a month with their automatic system. My question is this: I am 37 and have no retirement savings nor 401K. I am a freelancer. I want to have some risks with my Roth, (to make up time for the years I didnt save for retirement) but with how things are now in the market i also want to have some safe funds. These are the 3 funds I picked for my Roth: Are there good for me?
- Equity Index 500 – $100 month
- Balanced Fund – $100
- Treasury Money $50
Are these funds diversified enough for me and are the amounts well distributed?? I will appreciate your comments. I am blind when it comes to investing, but i wanted to start with a roth and not wait any longer. Thank you!!

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]]> By: Tom B. http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/comment-page-5/#comment-186668 Tom B. Sat, 11 Jul 2009 22:27:48 +0000 http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/#comment-186668 Thank you Patrick! Another question...if I may.... I have an inherited IRA with approx $36K. I have to begin taking RMD's by this Dec 31. Not sure if I should stretch IRA with the RMD's(over remaining lifetime) OR opt for the 5 year rule (take out increments so I don't get killed at tax time)and put those distributions into a Roth ira. Not sure if I'm missing another option. Definately can't do lump sum. I relly need to hire an advisor, but the last 3 I talked to, were only interested in selling me products that benefit them. I will take any advice with a grain of salt, but it's interesting to hear what other's would do. Any thoughts? Thank you Patrick!
Another question…if I may….
I have an inherited IRA with approx $36K. I have to begin taking RMD’s by this Dec 31. Not sure if I should stretch IRA with the RMD’s(over remaining lifetime) OR opt for the 5 year rule (take out increments so I don’t get killed at tax time)and put those distributions into a Roth ira. Not sure if I’m missing another option. Definately can’t do lump sum.
I relly need to hire an advisor, but the last 3 I talked to, were only interested in selling me products that benefit them.
I will take any advice with a grain of salt, but it’s interesting to hear what other’s would do.
Any thoughts?

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