Comments on: You Need a Roth IRA http://www.moneyunder30.com/roth-ira Personal Finance for the Young and Ambitious Thu, 18 Mar 2010 20:56:56 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: drew http://www.moneyunder30.com/roth-ira/comment-page-1#comment-2356 drew Sun, 19 Jul 2009 17:50:39 +0000 http://www.moneyunder30.com/?p=1553#comment-2356 I know nothing about stocks or mutual funds. What I would like to do is contribute 200 bucks a month into some kind of interest accruing account so 30 years down the road when im around 55 I have some money saved up. I dont like to gamble I just want to slowly accrue wealth, should i do a roth ira or some other kind of account. I know nothing about stocks or mutual funds. What I would like to do is contribute 200 bucks a month into some kind of interest accruing account so 30 years down the road when im around 55 I have some money saved up. I dont like to gamble I just want to slowly accrue wealth, should i do a roth ira or some other kind of account.

]]> By: Susan http://www.moneyunder30.com/roth-ira/comment-page-1#comment-2358 Susan Thu, 02 Apr 2009 03:32:37 +0000 http://www.moneyunder30.com/?p=1553#comment-2358 Rolling the old 401(k) into an IRA will diversify your portfolio, by allowing you the freedom of greater investment options of the IRA, not limited by your former company's selected plan funds. You will also be able to make further contributions to the account. Whether or not you decide to make that rollover into a traditional or Roth IRA is totally up to you. I recommend having both ultimately, and maybe even at different brokerages. Keeping the 401(k) can be limiting and risky. It is limiting because you cannot make further contributions to the account since you have left your former employer. It is risky because if your employer decides to close their plan with the brokerage (they go out of business, for example) your balance may be sent to you in a lump sum payment, at their discretion, causing you the hassle of the penalties and taxes. Save yourself the hassle of scrambling to deal with that and make the change of your own accord, as you will be more informed if you plan ahead. Rolling the old 401(k) into an IRA will diversify your portfolio, by allowing you the freedom of greater investment options of the IRA, not limited by your former company’s selected plan funds. You will also be able to make further contributions to the account.

Whether or not you decide to make that rollover into a traditional or Roth IRA is totally up to you. I recommend having both ultimately, and maybe even at different brokerages.

Keeping the 401(k) can be limiting and risky. It is limiting because you cannot make further contributions to the account since you have left your former employer. It is risky because if your employer decides to close their plan with the brokerage (they go out of business, for example) your balance may be sent to you in a lump sum payment, at their discretion, causing you the hassle of the penalties and taxes. Save yourself the hassle of scrambling to deal with that and make the change of your own accord, as you will be more informed if you plan ahead.

]]> By: Samir http://www.moneyunder30.com/roth-ira/comment-page-1#comment-2357 Samir Wed, 25 Mar 2009 18:29:02 +0000 http://www.moneyunder30.com/?p=1553#comment-2357 OK, so ever since the first day that I could, I've been participating in a 401k. When I left my first job about 1.5 years ago, I left my 401K with the original brokerage account (Charles Schwab). Now, with my new company, I contribute to a 401K at Fidelity. At this point, I can either: A. Roll over the Chuck Schwab 401K into a traditional IRA at Fidelity B. Roll over Chuck Scwab 401K into a Roth at Fidelity C. Keep 401K as is and continue letting it grow with the market (it's allocated almost entirely in stocks and funds). Any thoughts? OK, so ever since the first day that I could, I’ve been participating in a 401k. When I left my first job about 1.5 years ago, I left my 401K with the original brokerage account (Charles Schwab). Now, with my new company, I contribute to a 401K at Fidelity. At this point, I can either:

A. Roll over the Chuck Schwab 401K into a traditional IRA at Fidelity
B. Roll over Chuck Scwab 401K into a Roth at Fidelity
C. Keep 401K as is and continue letting it grow with the market (it’s allocated almost entirely in stocks and funds).

Any thoughts?

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