2ndhomechildcare 02:12 PM 01-15-2011
Where do you get a Roth IRA at a Bank?
TomCopeland 02:32 PM 01-15-2011
You can open an IRA in many places. Banks, mutual fund companies, brokers. See ads in major magazines, newspapers. Some of the largest mutual fund companies include Vanguard, Fidelity, Schwab, TRowe Price.
Sharon.Riley 12:52 PM 01-16-2011
What I've been advising clients is that they should have multiple IRAs, depending on their situation. My advice to a couple in their 30s would be to use a regular, bank IRA, to cut away at taxable income. Then, if they have any deposit amount left over, to put the remainder in ROTHs. In their 40s and early 50s they could diverisfy into a mutual fund IRA as well but, never more than 1/3 of the available deposit. Then, in their 60s they should still be wiping out as much taxable income with a regular, bank IRA, then deposit into the ROTH and reduce the mutual fund deposit to -0- because they are too close to using the funds to have a large piece in the riskier instrument.
The total contribution to all IRAs is $5000, of course.
Most people don't realize that mutual funds are the stock market. My Daddy always told me that the difference between the Las Vegas Strip and Wall Street is that in Vegas they give you free food and booze while you gamble.
Twice, now, in '87 and '05, I had more than a few clients lose in excess of 40% of their non-bank retirement instruments up in smoke.
Is my thinking sound?
Sharon Riley