What is the return on a Roth IRA and is it the best to invest in?
358558
The return on a Roth IRA depends upon the return of the investments that you've placed inside it.  You put investments in a Roth IRA in order to save for retirement and to avoid taxes.\n\nMost Roth IRA's are invested in mutual funds, and typical returns on these average 9 to 11% in the long run.  You can also use Roth IRA funds to invest in real estate, stocks, bonds, and small businesses.  You are not allowed to invest in collectibles such as art, coins (except gold), or stamps.\n\nA Roth IRA is a very good place to put your money for the tax savings it generates.  If you held the same investment and didn't put it into a Roth IRA, then the government would take 15% of your profits.
1045219
Pay off any credit card or other large debt. This will be your best rate of return.\n\nConsider investing the balance in a Roth IRA or contribute more to your 401K.
54030
What type of investment is going to held in the IRA? Stocks, mutual funds, cds?\n\nThis not a pyramid scam. From what I hear they are a reputable company. \nYou should get an IRA for yourself, it whether it is with them or another company. The most important thing is the investments being held in IRA. You want to look at past performance of the investment as well as the consistency of the investment. Look for one with consistently good returns not necessarily the highest return last year.
1182485
Ahhh, the million dollar question for Roth accounts...\n\nAnd the answer is - it depends (sorry). Unfortunately, you need a crystal ball for this one. Your decision will likely come down to what you believe the future holds. You need to consider several factors, but you basically have two courses of action to take. \n\n1) Take the sure thing - Contribute to your Roth 401(k), paying tax upon the contributions at your current income tax bracket.\n\n2) Let it Ride - Contribute to your Regular 401(k), defer taxes upon that income, and enjoy tax-free compounding of interest until you are able to take a qualified distribution (usually at retirement) at which time you will pay taxes on the principal and earnings at your future income tax rate.\n\nI suppose a third option would be to hedge your bets and contribute some money to both accounts so that you have some tax-related diversification in your retirement account (but let's not get that technical).\n\nSo, look into your crystal ball...\n\nDo you believe that you will be in a higher tax bracket at retirement age than you are right now? If so, the Roth option may be the right choice for you as you will likely pay less in tax today than you would years from now in retirement. Likewise, if you believe you will be in a lower tax bracket in retirement, it makes more sense to simply contribute to your Regular 401(k), enjoy your tax deferral over the years, and pay the piper upon retirement.\n\nThere are several wild cards to consider in this scenario, not the least of which is the possibility that tax brackets change. If you want my honest opinion, I think it is naive to assume that the historically low tax brackets we enjoy today will be around in 20 or 30 years. I am 31 years old and, without getting political, just look at the current landscape of our country and its budget deficits. The cost of wars, strains on social security from aging baby boomers, etc, leads me to believe that the government is mortgaging our nation's current problems and our generation will likely have to pay for it. And how will we pay for it? Higher taxes. All things being equal, if I were you and I had more than 15 years or so until retirement, I would opt for the Roth 401(k).\n\nBy the way...depending upon your plan's provisions, if your employer matches contributions to your Regular 401(k) plan, then you should still qualify for the match, regardless of whether you contribute to the Roth 401(k) or your Regular 401(k).  I think some of the other answerers on here were getting confused by your question - comparing a Roth IRA (not a Roth 401(k)) with a Regular 401(k).
1057768
PUT IT IN A ROTH IRA. I just took a dave ramsey course in school and if u have any other info ask me.. i have an easy to read book on all money questions
654122
If you want to EARN A 10-15% RETURN WITH A SECURED INVESTMENT, listen up. I am working with this company called ARTSTAR MANAGEMENT. They offer a 10-15% RETURN on your money. They can work with any money including IRA’s, and 401k’s, OR CD'S. They pay interest directly to you monthly and the investment is SECURED!!!! But they do have a minimum investment. Give this place a call it’s a great way to park money for safety and get a good return. Here is the address www.webuyhouses2.net Fill out a form and they will send you a no-obligation information package and you can compare their investment to the mutual funds and such. HAPPY INFORMED INVESTING!!!
670584
I am 24 four years old and started a Roth IRA three years ago.  It took $250 to open an account.  After that, I set up an automatic deduction of $50 from my checking account once a month.  Aside from that, I contribute 10% of my income tax return each year.  Right now I have about $5000 in stocks.  I know it is not a whole lot, but the benefit is compounded over years instead of waiting until I am 40 to start saving.
163073
S&P is good however i would go 60-65% stock and 40% bonds and cash investments so as to diversify your account while still making you a good rate of return.  When you get to around 60 you want to move more toward bonds and other save investments.  Remember as long as you diversify you will be fine so put your money into some other funds.  If you dont have a finicail planner available with your 401k plan seek out one to help.  Also www.bobbrinker.com and bankrate.com are good sites to help with investing.
606169
Roth IRA utilizes after tax money. You can contribute up to $3000 annually. This type of investment produces tax free income later in life. Long term savings Great idea!\n\n\nConventional IRA. Uses pre-tax money. shelters some of your income. \nMaximum contribution allowances change. Check current rules.\nGo to: clarkhoward.com for lots of info
586143
There's no rule against non-IRA investing...\n\nThe current minimum age to withdraw from an IRA penalty free is 59 1/2.  A Roth IRA is pre-tax money, so you can withdraw at any time - you've already paid the tax, but you're not being assessed tax on the income of that account.\n\nBut if you've done that, establish your own investment fund, at E-trade, or Schwab, or Scottrade.  You will be taxed on the income, but if you make $1000, and have to pay $150 in taxes, you still have an $850 gain!  That can help speed up retirement, and that account has no withdrawal restrictions.
133917
At a younger age, the Roth is the best way to go. All your earnings and withdraw will be tax free. Also, in certain "situations" such as buying a home for the first time or medical bills you can have access to the funds, but generally you will have to wait a while to get your money. This savings vehicle should probably be combined with something like a 401k-especially if you can get an employer to match. Finally, you can get a credit for your retirement contribution on your taxes if you meet certain AGI restrictions. It is called the Retirement Contribution Credit, and, as I understand it, can be applied for Roth contributions. You have until 3/15 to contribute for last years' Roth-if you so choose. Good Luck!
905594
It depends on how risky you want to be.  Do you feel confident about your ability to play the stock market?  If so you could take a chunk and invest it there.  If you are more conservative then I would suggest an ING account or a CD with the highest return of investment.  Usually a 12 month CD will carry a higher return but you cannot access this money easily without paying a penalty.  So if you want a good return with access to your money either a money market or an ING account would probably work best.  Happy investing!
442756
You should use 4000 to put into a ROTH IRA.  You can put another 4000 in a ROTH IRA for your wife.  If you are taking advantage of the tax deduction of mortgage interest, your interest rate is effectively 4%, so it probably makes more sense to invest rather than pay off your mortgage.\nYou might want to put your 2000 into municipal bonds which will give you tax-free income.
1180578
he best way for you to invest depends on a lot of things.\n\nFirst, if you don't have an emergency fund worth 3-6 months of expenses, establish one first, maybe in a money market fund so you can get at it in an emergency. It won't pay back much, but it's better than having to borrow money in an emergency and getting into debt because your money is locked up. Nor do you want to sell your investments during a temporary downturn to pay for something like a new roof. Then you'll have lost that money permanently.\n\nNext, if you haven't done the 401(k) thing and the IRA thing, do it. Tax-free or taxed deferred savings are good.\n\nFinally, if you've already done all those things and still have money left to invest, there's still more stuff to think about. Long term, stocks will grow faster than anything else, but can be very risky short term. They're a terrific investment if you're young and have a long time line. If you're older, you have to think more about safer investments, because you don't have as much time to recover from a downturn in the market.\n\nAnyway, there is no "best" way to invest a sum of money. What's best depends on a lot of different circumstances. If you really want a good investment, go buy a book on investing so you can decide what makes sense for you. Sure, you could give your money to a financial advisor but how do you know he's not just in it for the fees and commissions he charges you? How do you know his advice is any good? You need at least a foundation so you can make an informed decision. Personally, I like "The Only Investing Guide You'll Ever Need" by Andrew Tobias. It'll give you the basics. Good luck.
617262
The first thing you need to do is read.  Ben Graham's the intelligent investor is a good place to start and then look at books on Warren Buffets methods.  Dont do momentum investing or day trading its to risky and the commisions will kill your returns.  The best way to go is value investing all the way.  I usually look intially for companies with 15 percent return on equity for at least 5 years and a p/e ration of between 5 and 15.  Also look for a history of positive earnings.  Thats real basic and then you will need to learn to read income statements, balance sheets, and understand cash flow and stuff but thats someplace to start.\nIf you dont have an ira you should get one a roth ira is best if you qualify.  I recommend putting your ira in mutual funds and vanguard is by far the best company.  Their expense ratios are way lower than other companies and this will pay off big in the long run.  Well, I hope that helps.  Good luck.
600002
I'm a professional investor.  I highly recommend that you invest inside of a ROTH IRA.  Not only for the tax benefits, but as a young person, if you need the money for a house down payment, you can get money out of a Roth.  I would strongly consider avoiding stocks if you're a beginner.  You're competing with professionals who do this for a living and you may get lucky, but 99% of beginners *eventually* take themselves to the cleaners.  You probably don't have a ton of capital to begin with, so a diversified mutual fund makes the most long-term sense.\n\nI do recommend beginning to invest in college.  It's a great habit to form.  I did the same.  While my buddies were out buying much nicer cars and even boats with money they saved, I was socking money into a retirement account.  The difference an appreciating IRA makes in comparison with a depreciating vehicle is mind boggling.\n\nStart now.  Start simple and diversified with a mutual fund.  Invest inside of a Roth IRA.\n\nIf you really want to trade stocks, then be willing to lose 50% or more of what you're starting with.  Most people I know, do.\n\nGood luck, email me with any questions,\n\nJared
447017
Roth Definitly. You can read some on it at the web site listed below