Opening a Roth IRA and 70.5 years old?
952059
I'd also like to add that the funding of a Roth or any other IRA is by calendar year Jan1-Dec31. You may also make a contribution and designate it for 2006 anytime prior to the 2007 tax filing deadline on or about April 15th. The limit she can contribute for 2006 is $4,000 or the amount of earned income, whichever is less.\n\nVanguard, Fidelity, and T. Rowe Price are all good companies and your mother decides on what type of investments she wants based on her risk tolerance.
466296
Do you have earned income?  Are you filing your tax return in the states?  If so, you might still qualify to open and contribute to traditional IRA or ROTH IRA.  If you're self-employed, you might be qualified to open a SEP IRA where the maximum contribution limit is 42,000 or 100% of income.\n\nDefinitely do save/invest in addition to IRA limit for a secure retirement.
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
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.
341439
You can beginning making withdrawals from an IRA without penalty at age 59 1/2 (you still have to pay regular income taxes, unless it's a Roth IRA).  See the following government publication:\n\nwww.irs.gov/pub/irs-pdf/p590.pdf
1147141
At 23, time is your best friend (hooray compound interest).  Your best bet is to (if you haven't already,) open up and max out your Roth IRA.  This allows you to allow that compounding to work in a tax-free manner after you deposit. See what a difference that can make here: http://www.dinkytown.net/java/RothIRA.html\n\nIf you work for a company that provides matching funds for your 401(k) or similar retirement account, be sure to get the maximum match - it's free money! (that has to come from your income, but you can use your $10K to buffer your cost of living while you max your contributions).\n\nNote, it'll depend both on your capital gains, and the tax efficiency of your investments, but when I ran the numbers for myself, I found that I was much better off using my 401(k) for investment even though I plan on early withdrawal: http://randomfoo.net/blog/id/4087\n\n(Over a longer time-horizon, the tax efficiency is going to make a huge difference, plus you can also drastically rebalance with near impunity, tax free)\n\nRegardless of the type of account you put your money in, you still have to decide what you're going to invest in.  There aren't guaranteed returns, but for your goals (growth until eventual financial independence, yes?) you're best bet is probably a good index mutual fund. (You'll want to do your own research on this - although index funds are by definition 'average' they tend to provide total returns (after expenses) that beat the vast majority of mutual funds.  Here's one article to help you get started on why that's the case: http://www.fool.com/mutualfunds/indexfunds/indexfunds01.htm\n\nYour best course of action as you save towards financial independence is to continue investing (dollar cost averaging) and to diversify as your capital grows (bonds, international, REITs, metals) and to try to keep an eye towards what your goals are.  A good book on the subject matter is "You Money Or Your Life" by Domniguez and Robin, which talks less about investing (they suggest an extremely conservative approach), but more about a good basic mindset/framework for thinking about money.\n\nIf your goal is early retirement (reaching the point where you can live off your investments) you may also want to take a look at FIRECalc, an interesting early retirement calculator: http://fireseeker.com/ and the related Early Retirement forums (lurking and reading the archives is a good way to dip a toe in the water, so to speak): http://early-retirement.org/forums/
826571
Individual Retirement Account, if your money is before taxes you can contribute to a traditional IRA, this means you earn interest on the untaxed money. You are taxed when you make take the money out at retirement. Roth IRA, you take money that has already been taxed and are able to draw from it at retirement, without taxes. This is rumored to have been named for Ira Cohen, an IRS actuary who was working with them back in 1974. You can go to just about any bank, credit union, or find a financial advisor to explain in detail all aspects, what is allowed, what is not allowes (such as drawing out your money before age 59.5).
531660
You should talk to a representative at your financial institution where you have your IRA. They will be more than happy to give you individualized suggestions.
274365
A Roth IRA is an investment of after-tax money.  The current contribution limit is 4K a year.  You may withdrawl the money you have contributed at any time, for any reason without taxes or penalty.  \n\nAfter 5 years you may also withdraw the earnings for qualified expenses such as a first home purchase or educational expenses without penalty.  There are no age limits on your ability to make contributions to a ROTH IRA.  \n\nThe big advantage for younger investors of the ROTH IRA is that young people often have lower incomes and tax rates, so they will come out far ahead putting in money that they only had to pay low taxes on.
1132215
You need to start by reading what the IRS says about an IRA, see below).  From personal experience, if you don't have an IRA account yet, I believe that it would be better to set up a ROTH IRA, but that is up to you and your needs.\n\nFrom the IRS site:\n\nAn individual retirement arrangement, or IRA, is a personal savings plan which allows you to set aside money for retirement, while offering you tax advantages. You may be able to deduct some or all of your contributions to your IRA. Amounts in your IRA, including earnings, generally are not taxed until distributed to you. IRA's cannot be owned jointly. However, any amounts remaining in your IRA upon your death can be paid to your beneficiary or beneficiaries.\n\nTo contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year and you, or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self–employment. In addition, taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.\n\nCompensation does not include earnings and profits from property, such as rental income, interest and dividend income or any amount received as pension or annuity income, or as deferred compensation.\n\nPlease refer to Publication 590 for information on the amounts you will be eligible to contribute to your IRA account.\n\nIf you, your spouse, or both of you are covered by a qualified retirement plan, your IRA deduction may be reduced or eliminated, depending on the amount of your Modified Adjusted Gross Income and your filing status.\n\nFigure your deduction using the worksheets in the Form 1040 Instructions or Form 1040A Instructions or in Publication 590. You cannot claim an IRA deduction on Form 1040EZ; you must use either Form 1040A (PDF) or Form 1040 (PDF). Form 8606 (PDF) should be attached to your return if any of your IRA contributions are not deductible. If both you and your spouse qualify, each of you may contribute to separate IRAs.\n\nThe deadline for making a contribution to a traditional IRA for the year is the due date of your return, not including any extensions of time to file.\n\nYou may choose to take the deduction on a return filed before the contribution is actually made, provided you make the contribution by the due date of that return, not including extensions.\n\nAmounts you withdraw from your IRA are fully or partially taxable in the year you withdraw them. If you made only deductible contributions, withdrawals are fully taxable. If you made any non–deductible contributions, withdrawals are partially taxable. Use Form 8606 to figure the taxable portion of withdrawals.\n\nAmounts you withdraw before you reach age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distribution amounts by April 1st of the year after you reach age 70 1/2. These additional taxes are figured and reported on Form 5329 (PDF). Refer to Form 5329 Instructions for exceptions to the additional taxes. For information on Roth IRA contributions or distributions, refer to Topic 309 and Topic 428. For information on conversions from a traditional IRA to a Roth IRA, refer to Publication 590.\n\nMore information on IRAs, including information on tax–free transfers and rollovers, is available in Publication 590, Individual Retirement Arrangements (IRAs).
151098
you can always have an ira, even with a 401k. i suggest a roth ira with 1 year renewals. drop at least $500 in every year, more if you can up to the max (about $4,000 for married)
696554
No questions... contribute 4%.  You can't pass up free money.\n\nAlso, if you qualify, start adding your yearly $4000 into a Roth IRA.  Save now and you will be a millionaire in 20 years.  Trust me.
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!
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.
29787
With 1.5 million invested you should be able to get 6% without a sweat if you have half way decent financial advisor. \n\nThat's 90k in income.  If you have no mortgage I dont see why you can not retire with 90k - taxes.\n\nOf course it depends on what type of lifestyle you are accustomed to and if you are willing to lower your standards while in retirement?\n\nAlso keep in mind that when you reach 67 you'll also be getting money from Social Security so that will hopefully boost your income at that time but does not help now.\n\nI would not recommend touching the principal but rather living off the interest off the money so when you pass away you'll have something for your heirs or charity whatever the case may be.\n\nUltimately only you can decide what type of life to live after retirement.  If you can live with a before tax income of 100k or so you are good to go.  Also remember income from investing are not taxed for social security so you only have federal and state tax to worry about.  Move to a state that has no state income tax and you save 5k right off the bat.
502652
E Trade is good, but you will have to pay every time you buy/sell a stock. Why not get a no load mutual fund invested in a Roth IRA (minimal openeing balance) at Vanguard or Fidelity. You are a great age to start an 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.