1. If either you or your husband has access to a 401k, put in enough to get any company match.
2. If your 401k offers good, low cost mutual funds, then you might just raise your contribution until you're contributing 10-15% (rather than opening an IRA).
3. Open a Roth IRA and max it out (each of you, if you can afford to). You can open one anywhere you want and put any kind of funds (or stocks or bonds or even real estate) in there. Plus you can take your contributions back out penalty free at any time. I recommend Vanguard as well. Great funds, lots of choices (pick a target retirement date fund), and ultra-low costs.
Note: Vanguard funds have a minimum of $1000 per fund in an IRA. So save your money in a high yield savings account like ING direct or Emigrantdirect until you have the $1000 minimum. Make sure you're getting at least 5%, wherever you put your savings.
2007-06-13 15:34:20
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answer #1
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answered by lizzgeorge 4
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Don't put your money into a CD..... I agree with the other answerer.....Go into a Target Maturity fund.
Fidelity, Vanguard and T. Rowe all offer good Target Maturity funds. You select the fund that is closest to your year of retirement (ex: 2020, 2030, etc.). The asset allocation model is based on your retirement date and will invest as aggressively or conservatively as necessary. Your accounts are automatically rebalanced by the portfolio manger. It's basically an auto-pilot retirement investment. You can't go wrong!
2007-06-13 22:03:31
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answer #2
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answered by NoTurningBackNow 5
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Look into the Vanguard Mutual Fund Family. They have target funds that diversify your investment based on your time horizon and when you plan on retiring and the expense ratios are low. For example, if you wish to retire by 2025 they have a Target Fund Retirement Fund for 2025 that will allocate among stocks and bonds and adjust automatically each year to reduce risk as you get closer to retirement. It takes the guessing out of investing decisions. Good luck.
2007-06-13 20:23:33
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answer #3
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answered by Michael L 2
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All the answers (so far) are pretty good. Here's my 2 cents;
I like;
Schwab, Fidelity, Vanguard & T. Rowe Price (to start).
You're better off "dollar cost averaging" into a Mutual Fund than saving a lump sum and investing it at one time. This way your cost of entry is an average of a period of time.
2007-06-14 00:08:21
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answer #4
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answered by Common Sense 7
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The best way to get a retirement plan is to do it through your employer. Individual retirement Accounts are not as good a deal, as an employer account but you can certainly do those also. I'd recommend seeing if you can get one through vanguard. They are always rated high.
2007-06-13 20:31:04
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answer #5
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answered by Anonymous
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You might want to speak to someone at Charles Schwab. I have been with them for about 15 yrs, and their customer service is exceptional. Vanguard is also very good, but Schwab has a wider variety of funds & investment options.
2007-06-13 20:21:30
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answer #6
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answered by JeffyB 7
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