I guess I have figured I want a Roth I was more looking for ideas on where to go to get it started. Like do I go to the local Edward Jones or has anyone started one online like through a Ameritrade or Fidelty type sites. Just didnt know if it could be trusted to do something like this online. Sandmann I was going to give you a call here after the 4th, but I do live in North Dakota and didnt know if that was a big deal or not.

You don't get my point. You used the term Always three times and Every once in describing the results. You are correct in that the pre-tax dollars will get you a bigger gross number over time given the same investment performance. That is a no brainer. However you are comparing two completely different "numbers". The Roth number is a net amount. The Regular IRA amount still has taxes that need to be paid. You can't fairly compare those numbers on any level. They are apples and oranges. I can draw up scenarios where one outperforms the other and vice versa depending on assumptions regarding current tax rates and those tax rates anticipated in the future.

AGAIN, my point was that every situation needs to be looked at on an individual basis. Some people should be first be investing their extra cash into a regular IRA and some into a Roth.

You state that he is making a mistake by investing in a Roth. How can you make that statement when you have no idea about his complete financial situation? You need to look at the whole picture before making recommendations on his personal financial sitution. Maybe he thinks he will need access to the money without penalty. That option is only available on the Roth.

He asked for help on setting up a Roth IRA. Give him advice advice on that. Let him figure out if that is what he actually needs. He has a better sense of his financial situation than any of us could.

I have 20+ plus years in Finance disciplines and have an MBA in Finance. However I won't use that experience to make recommendations about others financial situations when all I know about the situation is the guy has a desire to open a Roth IRA.

i started my own. i went with vanguard lookes at the performance of two different funds and compaired them to other companies. seems to be doing ok. a investor friend of mine told me that if you start it young put it in 100% because you have time to recoop any losses if they happen and wait till you have a little bit of money before you diversify. he says this way you get more out of your money.

I am no expert here, but from the info posted here so far it would seem that what your income levels are going to at be when you retire would play a huge part in deciding where to put your money. The biggest things is put some money into a retirement fund.

Myself, as far as I can tell my income and tax rate will drop when I retire, so the pre tax option should work well for me. I should wind up paying a lower tax rate on the money then as I would now. The only bummer here is the company I work for only offers a 403.b so there is no matching funds.

I am always a bit leery of making a decision based on the schpeal of someone who can or might make money based on my decision, you know they will want to sway you to their benifit. Human greed normally plays a part.

Just like any big $$$ purchase I will not make the decision there in front of the salesman, I would rather go somewhere and talk it over with someone impartial.

When trying to figure the tax rate on these programs its tough as they can and will at times change all the rules.

If there is a match at your place of employment, one has to at a minimum put that much in to get that match.

All one can do is save as much as possible and start as soon as one can and never pull any of that money out. Who knows what one will have in the end but we do know it will be more than one who starts late or never starts saving at all.

I believe the biggest key is to start as early as possible.

Amen!! The earlier you start the less you need to put away per pay day. I wish I would/could have started earlier than I did. Now it is a mad dash to put money away so I don't have to work til I am 70.

BINGO!

Which one is best? Nobody can say for sure EXACTLY which one will be best 30 years from now, only which one is best for the situation you are in now. Just start one you feel the most comfortable with. For our situation both my wife's financial guy and my financial guy (both are thru work, no cost to us) and the investor guy we pay for have recomended a 401K over a Roth. The biggest key to financial stability is to reduce debt. You can chose to either have interest rates work for you or agianst you.

Heck, if someone can tell me what the rules are going to be in 20 years I'd just have them give me tonights lottery numbers then I wouldn't have to worry about retirement accounts!

Thats right, one will not know what the rules are 20 years from now so all one can do is save. It doesn't really matter where you put it as long as you put some somewhere.

Gators, you can give me a call or shoot me an email. I can hook you up with people in the GF area to talk to if you want as well.

I thought the old saying was to pay tax later instead of paying it now. Put in 401 Pre tax and have the governments money work for you for 30 years.

The best thing to do is talk to a professional.

Either way you will probably pay taxes on it. It's whether you want to be paying it in the years prior to your retirement, or be taking out taxes when your retired.

Yes, you will have more in the retirement plan if you put in a pre-tax plan, you will just be deferring that tax.

I've heard it's better either way depending on who you talk to. Personally, I would like to have as little tax to worry about then as possible.

You're missing my point too. I said the tax-deferred would net more money in the end even after the taxes are paid. Which it does if you assume the same tax rate at retirement, although for many people the tax rate at retirement should be lower making tax deferred even more favorable.


That's not what I was trying to say ....... and you only took part of what I said. Specific advice had been given to forego tax-deferred to invest in a Roth, and I said you are making a mistake, or may be making a mistake based on the circumstances.


I agree with you completely. I don't agree with the specific advice that was given to him and the statement that it was the best way to go, so I was trying to illustrate that there are other avenues that could give a bigger nest egg. I didn't mean to make it sound like "my way" was the best way for every situation.

My apologies for getting off on a tangent and not answering your original question.

I think the broker or advisor or financial manager you work with is more important than the firm they work for. This is the person that will be giving you advice and managing your money, so it is important that you have a level of understanding and trust with that person.

So, how do you find a good advisor? I think personal references are the best - do your folks or relatives work with anyone they would recommend? How about friends or coworkers? Do you have a banking relationship now, they would recommend someone to you?

This should just be a starting point for finding an advisor. After that you need to talk to them, to hear and understand their advice for you and your money. And you should question them on their investing strategies and their performance ---- a good track record is key as far as I'm concerned. After that, it comes down to whose advice you trust the most and who you want to put in charge of managing your money.

Personally, I prefer to pay a management fee that is a % of my assets, not a per-transaction fee. And for retirement savings, my philosophy is that I don't want "a lot" (subjective term) of trading - I want periodic rebalancing and trades when it's prudent, but I don't want a lot of trading trying to time the market or get in and out quickly, etc. Those are my philosophies given my age and the amount of assets I have, other people will have different philosophies for their money.

Good luck. A lot of what you hear might seem confusing, but the bottom line is you're starting at the best time - now.