Roth IRAs the higher the rates the more $ u get but there is also a higher risk. that mean u can lose$?

Answer 1

Oh yeah! You CAN lose, but it's getting rare in these days of very, very diversified investing......if this is your first IRA be a little cautious with it...let it grow... same next year...but when you do get to the point of having some profit, get into some more "aggressive " funds ( IF YOU ARE UNDER 35)
Who are you taking out your IRA with...ask for every bit of investing info they have! KNOW what you're doing with your hard-earned money!..(try Fidelity)
A little fooling around ( learning terms, researching funds, comparing things....man, it's just punching keys/ killing time)
...and you will be ready to put the right amount of money in a safe place, a little in some foreign stuff, maybe something riskier like small drug companies.....oh! and always get into funds in real estate ( NOT homebuilders, but the people who own, finance and operate "income and commercial" property)
Read, read ,read at http://www.finance/yahoo.com/funds

Answer 2

I have my Roth IRA in a brokerage account and the risks are no different.

There are basically 3 different scenarios.

If you are not making much money now, a Roth IRA might be better.

If you made a lot of money this year and need a tax deduction now, a Traditional IRA might be better.

If you do not qualify for a traditional IRA because you are putting too much into another retirement plan, you might be able to put money in a Roth IRA also.

Answer 3

Roth IRA's are typically invested in stock and bond mutual funds.

YES, YOU CAN LOSE YOUR PRINCIPAL.

Anyone you could be setting up your IRA with has a responsibility to talk to you about your financial goals, risk tolerance, age (which plays a factor in how much risk you should be willing to accept).

By buying into mutual funds and index funds and spreading your money over a wide area of investments, you can limit your risk of losing money. Find a good advisor and sit down with them for 30 minutes.

Answer 4

Yes, but that is typical when it comes to investing. Usually you can invest in conservative, moderate or aggressive funds. Conservative is usually close to a fixed rate, for example a money market account or a basic savings. Moderate or aggressive depends on your time horizon (amount of time you have to invest before needing the money)

Most retirement accounts have no guarantees, with respect that they are not usually FDIC insured like your bank accounts.

If you have many years before retirement, go for something aggressive and remember, with the Roth any gains will be completely tax free!