Help With Retirement Planning

bolo00911@hotmail.com · #1 (**permalink**) 10-16-08, 06:16 PM

I am planning on opening a ROTH IRA.

I am wondering which investment firm I should go with? Are there some firms better than others?

I don't know anything about the market and I'll probably have the agent manage my portfolio.

The only thing I know is I'm in my 20's and I should have an aggressive stance.

Thanks.

Airelon · #2 (**permalink**) 10-16-08, 06:48 PM

Ask to see audited results.

Ask if they are pure value investing, or if they use dividends to accelerate growth? (Dividends are more 'safe', but slower. Value takes more skill to do well, but when done well, yields higher returns)

I'd also go with a larger, well known firm at the moment. Bank of America. JP Morgan Chase. Goldman Sachs. Someone that is surviving the current mess ...

bolo00911@hotmail.com · #3 (**permalink**) 10-17-08, 05:31 AM

Cool. Thanks.

Hopefully when I ask about the accelerated growth and value investing I won't get confused. Haha.

I am currently banking with Wells Fargo but I think I should open my ROTH IRA with a different bank. I'm probably going to go with Bank of America or HSBC.

Thanks again.

bolo00911@hotmail.com · #4 (**permalink**) 10-17-08, 09:00 PM

Oh and what is the best way to save for a down payment on a house?

Any special accounts out there I should look into?

Currently making $30,000 a year before tax and living wth parents.

Stocktrading101 · #5 (**permalink**) 10-24-08, 12:07 PM

I think its a great idea to stay banked with either Wells Fargo or Bank of America, JP Morgan Chase is another good one. All three banks are in arguably the best shape out of the group and will last the bear market.

As far as saving for a downpayment on a house I have most of my cash in high yield savings accounts yielding around 3% per year. The advantage of a high yield savings account is you can pull your money out at any time (unlike a CD for example). For me personally I am waiting for the market to bottom and turn the corner, then I will move back into stocks.

This post here on the site should help,

http://www.stocktradingtogo.com/2008...ortfolio-cash/

allangering · #6 (**permalink**) 08-24-09, 03:54 AM

Imagine access to a retirement fund without having to pay income taxes. Although you won’t receive a tax deduction for any contributions you make, your money grows tax-free, making it a truly fantastic place to begin saving for retirement.

Jenn Vivyan · #7 (**permalink**) 09-07-09, 07:30 AM

It is very good to start early when planning for you retirement. If you have a job the easiest way to start planning for retirement is through your 401k or 403b (403b is for educational and government employees I believe).

How a 401k and 403b works: you tell your employer to take a percentage of your pay check, however much you want, and they deposit that percentage PRE-TAX it into a retirement account called a 401k or 403b. From there you can choose from professionally managed mutual funds where to put your money. At your age, your risk tolerance should be fairly high, so maybe 25% in a growth fund, 25% in a value fund, 10% in a bond fund, 10% in fixed income fund, and maybe 30% in a international/emerging market fund. As you get older you will want to reduce the percentage in the international/emerging markets fund and increase the others. The best part is that the money they take from your pay check doesn't get taxed until you start to withdraw it when you are old and retired.