I have an IRA account invested in a bank, How can I use that to invest in other things such as stock trading or mutual funds. And I need to know more about what Mutual Funds are.
2006-06-30 17:04:46 · 5 answers · asked by ricci 1 in Business & Finance ➔ Investing
Easily, you can move your account to either a brokerage firm or mutual fund company. The bank can do that too (most have their own brokerage firm) but a bank broker is going to have fewer investment options.
But before you do that, do some homework. Go buy "Investing for Dummies" and learn how to choose your investments. You can't trust your friends (and not these boards for sure) to pick your investments. You can hire a pro, and it is worth it if you have a large account, but for little investors, the cost of that help gives you noticably less to invest (advice isn't fee), so it is good to start out on your own.
As to stocks and bonds vs funds, stick to funds until you have at least $50-100K. It is almost impossible to build a good portfolio with individual securities with less than that.
and to your last question,
a mutual fund is a professionally managed portfolio of different securities. They can hold stocks only, bonds only, a mixture of both and other types of securities.
Instead of you trying to buy all those different securities you need to design a good portfolio, the fund has done it for you with your money and the money of other investors. You buy shares in the fund instead.
This gives you the same risk/reward potential as a bigger investor.
2006-06-30 17:12:48 · answer #1 · answered by Lori A 6 · 1⤊ 0⤋
Through a brokerage account with a company like TD Ameritrade. They will give you all of the information you will need to set up an account.
2006-07-01 16:10:50 · answer #2 · answered by GC 1 · 0⤊ 0⤋
Lori's answer is absolutely correct. In addition, consult a professional. Ask around and interview at least 3 different financial advisers.
2006-07-07 16:24:19 · answer #3 · answered by 2bizy 3 · 0⤊ 0⤋
Go find the richedst person you know and have them coach you for the next few years. Don't try to do it on your own lest your mistakes will be costly!
(Investing for Dummies book???? Puleeze... Gimmee a break!)
2006-06-30 19:12:13 · answer #4 · answered by cigarnation 3 · 0⤊ 0⤋
yes, if it is Roth IRA, because that is tax exempted.
2006-06-30 17:09:55 · answer #5 · answered by asianricepaper 2 · 0⤊ 0⤋