is there is good or bad time of open a Roth IRA? i have almost 40k in savings after a year of working and i realize now that i should have this money invested somewhere.
Is Fidelity a good place to open one?
Is right now a good time, or does it even matter?
Any advice welcomed, Thanks
Try a fixed indexed annuity
>>1159250
how is this better?
Is there somethign comparable to /fit/'s sticky of all the basics and how to start going about all this? Its a lot to take in at once.
Always put as much as you can into an IRA. It is always better to have money in an IRA compared to just regular investments. Buy Vanguard mutual funds, they have the lowest fees.
Open at Vanguard if you meet the minimum. If not I think TD Ameritrade has no minimum. Dump into passively indexed funds that track the global market. VTWSX is one of them.
Google 3 fund lazy portfolio.
https://www.bogleheads.org/w/index.php?title=Lazy_portfolios
Start here. Click into the links. Read more. Don't buy anything with any kind/front/back/other commission. Don't buy any life insurance. Don't buy any kind of annunity, fixed or variable.
>>1159204
Don't fucking try a fixed income annuity.
Use one of the large low-cost custodians. Fidelity is fine, you can do it with Schwab, Vanguard, or any of the others.
The issue is what you bug with it and your Roth limit is $5,500 anyway so keep the rest safe or you'll open a taxable account for some of it.
>>1159297
so i think i have till tax deadline to put money in for last year. can i put 5500 before april and then another 5500 a few weeks after?
>>1159282
Taking Fit's sticky seriously is already your first problem.
Here is when roth is smarter than 401k:
When you are young, the returns on your investments will be worth more than the money you put in. So you would rather be taxed on the money you put in.
When you are making almost nothing, your tax rate is lower so putting the money in post tax is smarter.
When traditional is smarter
When your adjusted taxable income is on cusp points between tax brackets.
When you are older and the gains on the money will by smaller by withdrawal than the money put in.
When your tax rate is so high that the gains from investing will not equal the initial deposit loss post tax.
So I am guessing you are pretty young. Roth is smarter because 1) you already have the savings taxed and 2) your tax rate is below 40k. You'll make more on the 5500 over the next 30 years than the 5500 is worth. Non taxed profits are better for you.
>>1159296
This guy is giving good advice. Vanguard is not mandatory.
An arguably minor consideration is that since it will be a Roth at $5,500 you will not qualify for admiral shares. In that case, ETF's are a better, lower cost option, especially if you can get them for free (Ameritrade, maybe?).
Schwab offers a number of low-cost, diversified ETF's and mutual funds which track the big indexes
>>1159317
Sorry, yeah. You can actually send two checks one with 2015 Roth in the memo and the other with 2016 Roth. Put them in the same fund if Vanguard and meet the req's for admital shares.
>>1159372
Yes, 2 $5,500 deposits will do it. I didn't have to wait my first year. Had done the prior & current year as bank transfer 2 minutes apart.
You can back transfer too.
>>1159400
Dividends and capital gains- do i reinvest them or transfer them to a market settlement fund?
>>1159322
You can convert investor shares to admiral shares after you reach the 10k minimum in total amount put in.
>>1159409
For a retirement account, just have dividends reinvested.
>>1159434
True. See above re: two transactions, one for 2015 Roth, one for 2016 Roth.