Where should I start my Roth IRA ????

Question

I am a college student and I want to start a Roth IRA, should I start one at a bank or some place else. bank or mutual fund?

Answer 1

It all depends on what you know about investing. If you're just starting out, open a self directed ROTH IRA at somewhere like optionsxpress. And then, do some research.

You might start out with some no-load mutual funds

Lots of sources for Mutual fund reports that you´re looking for.

Here are some.

Money Magazine
http://money.cnn.com/magazines/moneymag/bestfunds/indexfunds.html

Morningstar
http://www.morningstar.com/Cover/Funds.html?pgid=hetabfunds

Kiplingers
http://www.kiplinger.com/personalfinance/investing/funds/?

MutualFundRankings
http://mutualfundrankings.org/

And you may want to take a look at this article on mutual funds too just so you have a little more info if you´ve got tax concerns.

http://www.stanford.edu/dept/news/pr/93/930429Arc3288.html


However, as soon as you're comfortable knowing what you want to invest in, switch from mutual funds to ETF's. ETFs (Exchange traded funds) will allow you the diversity like mutual funds, but with a lot more flexibility.

And if you decide to learn more about stocks, you'll still have the flexibility to do that.

But for now, this'll give you a great start, while allowing yourself the freedom to expand to other options as you get more knowledgable about investing.

Good luck!

Answer 2

There is a good argument for either strategy. On the one hand you defer or even eliminate taxes depending on the IRA. On the other hand you might very well need use of that money sometime in the nearer future. Another argument in favor of an none conventional IRA is that capital gains outside of it are taxed at a lower rate. The smart thing in my mind is to split the difference. Invest some outside of an IRA and some inside of an IRA. You might wish to consider a Roth IRA because there is a good deal of evidence that the future tax rate might be considerably higher. Then again, the government might fool us all and replace the income tax with a sales tax. In that case a regular IRA might be preferable. One thing about the future. It is a complete unknown except for one thing. We all wind up dead in the end.

Answer 3

A mutual fund company or brokerage house that has many no-load funds available will give you the best investment options. Leaving your money in a bank earning interest will not give you great returns over the long run (if I assume you are of traditional age for a college student 18-22) but will give you safety. If you in your early 20's and don't plan to touch the money for 30+ years, don't leave it in the bank, at the least, look at index investing.

Answer 4

Fidelity is a great organization that can help you out with your Roth.

Good for you for starting one now. I waffled and waited until this year when I signed on w/ a company that offers a 401k and matching; I could have quite the nest egg if I'd started earlier.

Use the web to shop around for the best rates, remember to diversify, diversify, diversify, and when you're first starting out, 80% stocks and 20% bonds is a good balanced ratio. Fidelity can really offer you good, solid advice for your particular situation.

Answer 5

Try Ethanol.. I have invested in Ethanol Companies and have seen a 36%ROI.

one company that is up and comming is http://www.midwestethanol.com