at 36 years old is it worth starting a roth ira?
456953
You should consult a financial advisor to see if a roth IRA or a regular IRA is better suited to your situation.  With a roth, you don't get the tax write off now, but you won't pay taxes on it when you use it at retirement.  A regular IRA you can deduct it on your taxes now, but then you pay taxes on it when you retire.\n\n\nAlso, with a Roth, you can take it out after 5 years without a penalty so it's a good nestegg if you'll need it for a downpayment or something.
120424
Try the following: 1)Get the actual amounts you are eligible for at ages 62, 65 and 70 from the SSA.  2) Assume your remaining life span. Since you do not appear to need the money to live, base your decision on the maximum SS $ you will receive based on your assumed age at death.  For example if you are entitled to $1,000/month at age 62, or $1,200 at age 65 or $1,700 at age 70 and you assume you will live until 85 then the math would suggest if you began to draw at 62 and lived until 85 you would draw a total of $276,000; $288,000 if beginning at age 65 and $306,000 if you waited until you were 70. Ofcourse these calculations do not include the added cash you would accrue if part or all of the money were invested as you aged.  Remember the RULE OF 72. What percent do I need to double my money???  Divide 72 by the number of years and the answer is the percent needed.  For example to double your money in 12 years you would need 6% compounded.  (12 times 6 = 72).  It also works in reverse - if I can invest at 9% APR and compound the interest it would take 8 years to double my money. (9 times 8 = 72).  Teach this rule to your children and grandchildren and they will easily see the value in saving....and they have the best advantage of all.....TIME
128978
If you are looking long term a Roth IRA is a great idea.  The limit is 4000 per year, but before April 15th you can still open one for 2005.  So you can open a Roth IRA with 4K for 2005 and 3,500 for 2006.  As for the investment inside that Roth IRA, you will have to analyze your stomach for risk and your desired return.  If you are new to investing, but can handle some risk an index fund such as the S&P 500 might be a good start.
261331
I myself am a small business owner - self employed and opened up a ROTH IRA through www.sharebuilder.com about a year ago. The cost can vary depending on what plan you choose and how much you choose to invest every month. I myself invest $120/mo. and there is an additional $25 stock fund fee every year. My account value is nearly $2000. I strongly urge you to take a look at www.sharebuilder.com for your IRA investment needs. I've been very impressed with them. It's perfect for small business owners primarily because there are no minimum investment fees and their portfolio is very versatile.
109632
If you are working for a company with a 410K plan, definitely contribute the top percentage you are able to. I began when I was 21, and now that I'm 28 I have a HUGE amount of savings in mine.
103673
She's right if that is as much as you can invest.  Your best bet is to max out both if you can afford to.\n\nHere's the order:\n\n401K to match:\nROTH IRA max\n401K max
300890
In my opinion, as long as you do not try to withdraw the money early (before 59 and 1/2 years old) a roth IRA is the best vehicle for retirement if you qualify for it.  Within the roth IRA you can invest in mutual funds that focus on bonds if you would like, or more aggressive funds if you like.  You can definitely make an asset allocation that suits your needs and risk tolerance.  Hope this helps.
195894
Even for early retirement IRA's can be useful. Rule 72T allows for withdrawals from IRA's before age 59 1/2 without the 10% penalty if withdrawals are substantially equal and based on the life expectancy of the account holder.\n\nAlternatively, a Variable Universal Life policy can be overfunded. The invested value will grow tax deferred and can be withdrawn at any time, for any reason. When withdrawals are structured properly, they are tax free. This option is ONLY worthwhile if there is also a need for life insurance coverage.
985867
A roth account might be good or bad for you.  They're not good for everyone.\n\nA 401k or IRA is just a type of account, and has nothing to do with how much of a return you can get from your investment.  If you are investing in mostly a diverse mix of stock funds, you should expect a long term average return of 7-9%.  In some years you will get more (like 13%), and some years you will lose money).  In either type, you'll be investing in a mix of mutual funds.  The benefit of a roth IRA has to do with taxes.\n\nHere's the benefit:  With a 401k or traditional IRA, you pay no income taxes now on the money you put in.  You pay income taxes when you withdraw the money in retirement.  With a roth IRA, you pay the income taxes now, and pay no taxes on the money you withdraw in retirement. \n\nIf your income tax rate is lower now than it will be in retirement, you do not want a roth account.  If your income tax rate will be higher in retirement than it is now, then a roth account would be good for you.\n\nHERE'S HOW YOU SWITCH:\nYou "rollover" your 401k balance to a traditional (pretax) IRA.  That means you tell the company that has your 401k to transfer the money directly into an IRA.  As long as you don't receive a check payable to yourself, you'll pay no taxes or penalties.  You then "convert" the traditional IRA to a roth IRA.  This is something the company that handles the IRA does for you.  Basically, they take taxes straight out of the IRA and send them to the IRS.  This makes the money in the IRA after tax, or "roth" money.\n\nBUT...\n\nTo be able to transfer the money from the 401k to the IRA, you'll have to have already stopped working for the company.  AND your company might have the "roth 401k" feature, which allows you to contribute to your 401k plan with after tax money and have exactly the same benefit as the roth IRA.  ALSO if your company matches your contributions to your regular 401k, that will probably outweigh any benefit you could possibly get from the roth IRA.\n\nYou need to talk to the company that manages your 401k plan to find out what your options are.  And call a company that does IRAs to find out more details on the roth IRA to find out if it would be a good fit for you.  Try Fidelity or Vanguard.
314625
In short:  Taxes.\n\n\nIn long:\n--  Roth doesn't force you to take money out at 70.5.  (Traditional does).  You can only put money in to a traditional up to age 70.  (Roth has no age cap)\n-- Roth has a $110,000 income ceiling for single filers, $160,000 for joint filers.  Traditional has no ceiling.\n-- Contributions to a Roth IRA are not deductible.  Contributions to a traditional IRA are partially deductible, depneding on your situation.\n-- Earnings are tax deferred in a traditional IRA.  This means you pay taxes on earnings when you take the money out.  Earnings are tax FREE in a roth IRA (with two exceptions: account open less than 5 years, or withdrawing before your 59 if it's not to buy a home or support a disability.)\n-- Early withdrawal penalties on both types of IRAs are an additional 10% ordinary income tax on growth if you withdraw before you're 59.\n-- Both have $4000 annual contribution limits.  $4500 if you are over 50.  (This is now $5000 for over 50, for year 2006)\n\n-- General guidance is that you should start your Roth first, when you are employed and can afford the taxes.  No taxes on growth means that more of the growth goes back in to earn more.  The longer this money is growing the better.  If you can put in your limit and still have income left, start a traditional.\n-- There are several IRA calculators out there if you want to plug in your planned investment amounts and see how they'll grow over time.  Just google "roth vs traditional calculator"
1049878
Yes, you may contribute to your company's 401(k) and max our your Roth IRA.  \n\nYour contribution limits to the 401(k) are $15,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $5,000 to your 401(k) plan.\n\nYour contribution limits to the Roth IRA are $4,000 in 2006.  If you are over the age of 50, you may contribute an ADDITIONAL $1,000 to your Roth IRA.\n\nJust a reminder, almost all retirement contributions are subject to overarching limits set forth in IRS code Section 415. Please speak with a qualified tax advisor for more information before maxing out your 401(k) and Roth IRA.
66302
Yes, you can invest in an ira no matter what but if it's a roth you have to take an annual distribution if your over 59 1/2 and if it's traditional then you have to take the annual distribution if your over 70 1/2
284237
It is a good idea.  You can never make up the difference if you don't start investing until you are older (due to compounding interest).  A 401 K is dogmarked for YOU and no one can take that money.\n\nThe thing about baby boomers, that is really only affecting PENSIONS which are not the same as 401K.  Even if the market returns drop, your money will still be there.\n\nIf you feel worried, get an IRA from an independant investment firm.  Your return won't be as high and you will not get to put the money in before taxes, but this way your company cannot drain you.
119201
I suggest getting busy with your own Traditional and Roth IRAs. Vanguard has great offerings and very low costs. The annuities route is very complex, but if your situation is That Good it would be useful to contact a real financial advisor.
4569
30 years of contributing the max to a Roth IRA each year should create a million.  If you have a 401k at work that offers matching, contribute enough to get the max of the match.
498807
Keep it and make a habit of saving as much as you can afford or the maximum allowed.  Do so by investing through 401K Roth IRA or something else.  To have $500 in four years would not carry you through a comfortable living when you retire however young you are now.\n\nBy the way, to have grown to $500 out of $90 in four years is a huge return!  That kind of return beats 99.5% of all professional money managers.
752457
Instead of talking theory, I will explain exactly how you can do this. Open a Roth IRA account.  Deposit $4000 a year into the account.  Invest the deposited money into a diversified portfolio of equity investments.  Historically equity investments have returned about 10% annually and some much more 14%.  Assuming 10% average annual return in 35 years your account will contain over $1,000,000 and it will be earning a passive income of $100,000 on average annually.  \n\nNow here is the best part.  Because it is in a Roth IRA account all that money will be tax free.  WOW.