I want to open a Roth-IRA, now what? Help PLEASE!?

Question

I know that what I want a roth-IRA and I have a bit of money to start it off, but I'm confused as to which company to go to as well as what to look for when choosing a company. I've scoured the internet and there don't seem to be any clear, concise guides to this.

So...
1. Which company would you recommend using to open a Roth-IRA?
2. What should I look for when choosing a company? (How will they invest my money differently?)
3. What happens once I open it? Does the company do all the work or do I have to monitor stocks and bonds and constantly be "trading" in order for my investment to grow.

Thanks for your help!

Ok, Geeze... I'm 23, single, college graduate, don't earn much now but am in a field with very high potential once I work my way up the ranks. I'm not sure what my risk tolerance is but I think it's pretty high since I have so long till retirement. I can only contribute a couple of thousand this year but plan on contributing the max (4 or 5K) per year after now. I work freelance so this and whatever else I open for myself will be my only retirement savings, most likely.

Answer 1

A Roth IRA is a basket, not what's inside. You can put anything in that basket including real things like coins and real estate. To open one, you can go through a stock broker or mutual fund company. Both groups can be found in the phone book.

You can choose to do the buying and selling yourself or you can put mutual funds in your Roth and let the mutual fund managers do all the work. I would recommend somebody charging $25 or less a year in fees just to operate the Roth and stick an index like an SP 500, SP400 or Russell 2000 index in it or an ETF that tracks the index and just keep buying till you retire.

Answer 2

You tell us nothing about your age, personal situation, financial situation, investment goals, sensitivity for investment risk or retirement objectives. All those things are relevant to a sound decision. You might want to consider opening a Roth IRA with Vanguard (www.vanguard.com), and invest the money in a target retirement fund. Vanguard is one of the lowest cost mutual fund companies around. The target retirement funds are managed by investment professionals who take your cash and invest it in a diversified portfolio that is geared toward your retirement goals.

I can't say this will ultimately be right for you, but in the absence of more information about you, this would be a place for you to start. Make sure you are eligible for a Roth--see the first webpage listed below. The second webpage listed below tells you more about target date retirement funds (also called lifecycle funds).

Answer 3

stable for you. establishing a Roth on the age of 18 is rather smart. in case you may placed 10% of your month-to-month earnings into the Roth, the account will develop at once for you. evaluate some innovations. discover out the as quickly as a year expenses that distinctive companies are charging to open the account. additionally, look at long-term overall performance of your investments (10 years). If the investment has no longer been around 10 years, discover an investment that has been around 10 years. additionally discover out if the IRA costs a cost in case you % to circulate the account someplace else using undesirable overall performance. stable success!