I am currently contributing to TRA in the state of GA. It is a teacher retirement fund. I would like to invest more for retirment. I thought about opening a 401k. I would not have any contributions from my employer. Should I open a 401k or invest in other ways?
2007-07-21 12:29:05 · 5 answers · asked by MISSY E 3 in Business & Finance ➔ Investing
So far you've received some of the worst advise I've seen in awhile.
Be very care with advise from strangers whose qualifications and motives can't be known (including me!!!).
A 401K can only be with your employer. They open the plan. I suspect you mean an regular tax deferred IRA or a ROTH IRA. Each has it's benefits. Since the TRA is close to a regular IRA, I'd go for the ROTH IRA. BUT DO SOME READING ON THEM BEFORE YOU MAKE THAT DECISION.
Don't use banks and Insurance companies for your retirement investments. They tend to be very expensive & are many times sold by representitives that have little product knowledge or have very little fibibility of products to offer.
Ror IRA's... check out;
Charles Schwab
Findelity Investmnts
T. Rowe Price Mutual Funds
Vanguard Mutual Funds.
Buy the "Retirement Investing For Dummies" book. Read as much as yolu can in addition to that.
Good luck!
2007-07-21 14:54:08 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
Take out all your money from your teachers'(use direct rollover to account below) retirement fund. Do NOT put any money in your 401. Go to your local bank and deposit the money into a non interest bearing checking account that is FDIC insured. If you have greater than $100,000 you will need to split the deposit into two or more banks. This way you can sleep good at night knowing that when you need your money for retirement it will be there for you. You have eliminated all risk.
Please make sure you do not earn interest on any of this money as it will cause your taxes to go up. Please note the above strategy is a good way to get back at the IRS.
To the poster below: My answer was not suppose to be taken seriously. The person who asked the question I assume is a teacher and should realize this.
2007-07-21 12:51:47 · answer #2 · answered by Anonymous · 0⤊ 2⤋
Even if you don't have any contribution from your employer it's a good idea to open a 401K specially if you don't have a house or if you are going to send your children to College.
The limit is $15,500.00 USD per year.
I suggest you to save at least this amount if you don't have a house yet.
2007-07-22 07:14:42 · answer #3 · answered by Anonymous · 0⤊ 1⤋
as a teacher you cannot contribute to a 401k plan...perhaps it is a 403b plan...very similar...get out of your tra as you are paying huge fees that are costing you money...get out of that fund and try to get into a no load mutual fund...preferably vanguard or fidelity...ask your payroll department at work for a list of companies that you can choose from
2007-07-21 18:50:58 · answer #4 · answered by zioncanyon 3 · 0⤊ 0⤋
wait till interest rates hit 14% and put as much cash in as you can - even consider rolling over other accounts.
under reagan i was getting 16% on CD's make sure they are FDIC insured.
2007-07-21 12:36:52 · answer #5 · answered by cosmicwindwalker 6 · 1⤊ 2⤋