Roth ira?

[entrepreneur640]

does anyone invest in a roth ira? i am interested in investing but not sure exactly how to go about it. also does anyone do mutual funds? i am also going to invest in some mutual funds so if you have any advice let me know please.

[jasaunders]

Yes, Roth IRA's are a great investment tool for retirement due to the tax benefits. They are relatively straight forward, you can sign up for an account with any major brokerage such as Fidelity or Vanguard. It is always a good idea to have an IRA as part of a diversified retirement strategy, so I recommend doing at least a small direct deposit into a Roth account. They also have the advantage that you can withdraw the money penalty-free for the purchase of your first home.

[rogercbryan]

I like everything Joshua said... I would add that if you are new to investing that you need to be careful where you solicit for advice. A quick phone call to Fidelity can help you to get all the information you need. The younger you start the better off you are.

[Gaulkin]

No one can tell you what to invest in, it has to be your decision through lots and lots of research. I never advise people on what to invest in but i will tell you where my money is. I have a roth IRA and inside that IRA is a mutual fund called CGMFX managed by ken heebner. Its a very risky fund and not for everyone but if you do your research it may be the one for you.

[n/a]

I used to work for the Vanguard Group. If you call there 1-800 number a call someone there will be glad to go over mutual funds with you. they wont tell you what to purchase but they will give a rundown of the risks they have, market cap, industry breakdown and answer any other questions you may have about ROth IRAS. Just ask to speak to the Retirement dept about ROTHS and they will be glad to do so. You need to also look at traditional IRAs and see which one will fit your tax needs better. There are also SEPs and simple IRAs. (but you have to meet income and other requirements)

[MrLiquidity]

Nothing inherently wrong with Roth IRA's, but I tend to take a different approach. Since this is an entrepreneurial forum for younger folks, I'll assume your a successful entrepreneur and have many bright years ahead.

If you take a look at first generation millionaires, they didn't create their wealth with IRA's. Instead, they invested in themselves and their businesses. That said, keep your money in a place where you can access it. If you can access it and use it as leverage in your business, imagine the wealth that you could create.

Since you are already willing to sacrifice tax deductions by using a Roth IRA in order to have tax free access in retirement, consider placing your money in something that would allow access before retirement. Maximum funded life insurance policies or regular old brokerage accounts will provide you with financial liquidity...something every entrepreneur should strive to attain.

We entrepreneurs tend to earn a higher return in our businesses than the stock market...why stifle yourself with retirement accounts? Saving for the future is important, but I would rather have a $20 million dollar company than a $1million IRA - Roth or otherwise.

Cash is King!

Respectfully,

Brad Fisher,
President, Fisher Wealth Management, LLC
Founder, The Entrepreneur's Dream Financial Plan

[ZingerIntl]

I am not saying its not a good idea to be safe but real entrepreneurs invest in themselves. Think about it. I might rec you do a bit of both. I just like taking risks and they usually pay off.