401k-Roth IRA- company doesn't have matching.....????

[sharpshot31054]

How do you go about setting up an IRA? Does it take a financial advisor to do so? I'm 13 years into a 401k with my company but am interested in spreading money around.

 

[DADI03]

I use an investment company. I'm sure it could be done with out one though.

 

[jpm2953]

How do you go about setting up an IRA? Does it take a financial advisor to do so? I'm 13 years into a 401k with my company but am interested in spreading money around.

I just created an account with Fidelity and set it up. Took about 10 min

 

[brad sweet]

How do you go about setting up an IRA? Does it take a financial advisor to do so? I'm 13 years into a 401k with my company but am interested in spreading money around.

John Hancock they will walk you through all you need. takes about 30 minutes to set up.

 

[Bagman]

Fidelity and Schwab are both "low cost" advisors according to Clark Howard. I've been with Fidelity for years and have been very happy.

 

[sparked1]

I use an investment company. I'm sure it could be done with out one though.

It’s very easy. First, choose a broker. I personally use Vanguard but there are a few good ones. Vanguard has lots of ultra low-cost funds you can put your money into and not get killed with annual fees. Their website is a bit clunky and dated, but you’re not trading funds frequently so it works for me.

Then it’s just a matter of creating the account online, linking your bank account, funding your account, then choosing your investments. There is a forum dedicated to investing with Vanguard funds called bogleheads.org, where you can get lots of info on where to put your money.

 

[romans1212]

I’m sure someone has said this, but I will anyway...

Max out your ROTH first and fund 401K with monies left over if any.

 

[DirtySouth]

I’m sure someone has said this, but I will anyway...

Max out your ROTH first and fund 401K with monies left over if any.

The question is why though? Other than the tax liability at the age of retirement, what does maxing out the Roth do that the 401k doesn't? Also, are you talking about a Roth IRA or Roth 401k?

 

[fast306stang]

The question is why though? Other than the tax liability at the age of retirement, what does maxing out the Roth do that the 401k doesn't? Also, are you talking about a Roth IRA or Roth 401k?

If I have many many years before retirement and I'm just starting out and I have to pick one or the other, I'd go with the Roth. Reason being, over a few decades, your growth will very highly exceed your actual investment. If you invest a few hundred thousand over your lifetime, you can see several hundred thousand in growth, and every bit of it is tax free. (upon withdrawal at retirement)

 

[GeauxLSU]

The question is why though? Other than the tax liability at the age of retirement, what does maxing out the Roth do that the 401k doesn't? Also, are you talking about a Roth IRA or Roth 401k?

All of your investment growth is tax free. That's at LEAST 10% extra return for 'free'.