Roth IRA? good?

[imported_Lothar]

Originally posted by: rasczak
I'm currently enrolled with Vanguard through my employer. I'm 33 y/o and just starting out with this retirement thing. (I'm a fool with money and finances and was too bullheaded to listen to my wife when she said we should start this about 10 years ago.) What can I reasonably expect out of my retirement? I'm currently putting in 6% with the company matching 1:2 upto 6% of my salary. I'm currently set at that rate. I know I'm not gonna have enough when i retire at age 72 so what other options do I have? A savings account at a bank is a joke.

1.) 401k up to max company match.
2.) open a traditional or Roth IRA and max contribution.
3.) Increase 401k up to $15,000
4.) Open an Investment account if you still have money left over.

 

[imported_Lothar]

Originally posted by: purbeast0

Originally posted by: Lothar

Run away!!!

What a crappy website. They offer ZERO information about their IRA's and Brokerage services.

no trust me their website is not crappy at all. the online banking is fantastic on it.

but yea information wise, i'm assuming they do that on purpose so you have to go in and sit down and talk to someone.

That would be a negative in my book.

Feel free to have a chat with them if you want. Better hope they don't give you loaded funds with 5% expense ratios.

Is that the only bank you use?

 

[rasczak]

Originally posted by: Lothar

Originally posted by: rasczak
I'm currently enrolled with Vanguard through my employer. I'm 33 y/o and just starting out with this retirement thing. (I'm a fool with money and finances and was too bullheaded to listen to my wife when she said we should start this about 10 years ago.) What can I reasonably expect out of my retirement? I'm currently putting in 6% with the company matching 1:2 upto 6% of my salary. I'm currently set at that rate. I know I'm not gonna have enough when i retire at age 72 so what other options do I have? A savings account at a bank is a joke.

1.) 401k up to max company match.
2.) open a traditional or Roth IRA and max contribution.
3.) Increase 401k up to $15,000
4.) Open an Investment account if you still have money left over.

I've got #1 down

#2,3,4 are just not possible right now. I'm so broke that all i can afford atm is #1. (wife is in school, should be done by next year )


I don't know how you guys do it and still are able to save for your kids college fund. Maybe i should go back to school and get my degree to get into higher payscale. Or just become a call boy on the sly

 

[imported_Lothar]

Originally posted by: LuckyTaxi
My concern was w/ the contribution I put in.

How much do you have to contribute now?

 

[LuckyTaxi]

$150/month plus $1k initial deposit. in a way, i want to put as much as I can but make sure i am able to pull out IF I need it for an emergency (car, house, etc...).

 

[imported_Lothar]

Vanguard STAR fund.

or

If Fidelity or T. Rowe Price offers a lower initial deposit, then go with them.

 

[LuckyTaxi]

Originally posted by: Lothar
Vanguard STAR fund.

or

If Fidelity or T. Rowe Price offers a lower initial deposit, then go with them.

Explain the expense ratio. If a fund is 0.98%, is that the annual "fee" that is charged against what I have? So if my balance at the end of the year is $10,000, would they deduct:

(10,000 x .0098) = $98?

 

[Special K]

Originally posted by: LuckyTaxi

Originally posted by: Lothar
Vanguard STAR fund.

or

If Fidelity or T. Rowe Price offers a lower initial deposit, then go with them.

Explain the expense ratio. If a fund is 0.98%, is that the annual "fee" that is charged against what I have? So if my balance at the end of the year is $10,000, would they deduct:

(10,000 x .0098) = $98?

You have it right - that is how expense ratios work.

This may not seem like a big difference at first, but when you compound it over 40 years, the difference becomes very large. Keeping expenses low is very important.

 

[LuckyTaxi]

Thanks Special K, but let's say your funds lose money (like this year is a bad year thus far), do they still subtract?

 

[Special K]

Originally posted by: LuckyTaxi
Thanks Special K, but let's say your funds lose money (like this year is a bad year thus far), do they still subtract?

Yes. The expenses are deducted regardless of the fund's performance.