I do retirement planning. A Roth is just a type of account. It is a qualified account where you put after-tax dollars in now and you pull the growth and nest egg out tax free after you are 59 1/2. It can be set up like any investment depending on how much risk you want to take. There is no set rate of return. You could invest in mutual funds or whatever investment you would like. Roth has to do with how it is taxed, not how it is invested. I do several of these and other tax free investments. It is a good choice. As far as the broker’s fee, you shouldn’t get anything charges to you in the form of a fee upfront. The company the broker places it with pays them a commission based on the investment you put in. Let me know if you need anything else.
Posted by Chris the newb on October 31, 2006 at 08:30:50:
Hello. Im 21 and want to start putting money into a Roth IRA monthly. However, Im not really sure how this works. So Im hoping some of you folks could explain it a little better. So a IRA account is handled by a broker who takes the money you put in and buys you stocks with it? And your interest rate will always vary like the stock market? Guess I might be way off here. Just trying to understand this better before I decide to do it. Thanks guys.
Give me a call if you have any questions. Don’t worry, i’m not going to sell you anything. I’m only licensed in Georgia. I just want to make sure you understand what you are investing in. It’s good you are starting so you young.