I am 22 and am just starting to look into investing. What should I consider when looking for a firm to open a Roth IRA with? Is there risk that the firm I invest my money with might not be in business, say 40 years from now? Additionally, would I be able to transfer my money from one firm to another in the future? Any help would be great!
2007-03-24 18:04:43 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Assuming you're going straight to a mutual fund company like Fidelity or American, look for a firm that offers lots of investment choices, with low management fees.
It is extrememly likely that the company will still be in business in 40 years, OR will have been bought by another company. (In whch case they take over the management of yoru fund(s), or move your money into a different fund or funds.) But don't worry, your money is always yours.
You can transfer it to another brokerage or mutual fund company at any time.
A Roth is a great investment vehicle. Good job.
2007-03-24 18:16:11 · answer #1 · answered by Jim S 5 · 1⤊ 0⤋
What do you imply by means of "minor?" Never heard of a "minor" IRA -- Roth or Traditional... The highest annual contribution to all IRAs mixed is the minimize of your earned revenue for the 12 months or $five,000. If you're age fifty five or older you'll be able to kick in yet another $500 in keeping with 12 months. If you kick $five,000 into the Roth IRA then you definately are not able to placed something within the Traditional IRA and vice versa. Or you'll be able to break up contributions among the 2 any means that you simply decide upon, as much as the above limits. Any extra contributions draw in a 6% excise tax for each and every 12 months that they're left on deposit within the IRA. That's ample to wipe out any profits in a long time so that you desire to prevent that.
2016-09-05 15:00:41 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Of course there is risk--however stay away from individual equities and invest in a mutual fund. Look at VTSMX (a Vanguard fund that invites in the Wilshire 5000). The way you lose money with that is if 5000 firms universally tank. Thus it is a bet on the US economy.
Good luck!
2007-03-25 01:42:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋