Investing for retirement

Shadowblade · 07-22-2007, 09:02 PM

I'm about to open a Vanguard Roth IRA with all of my money in VFIFX which is a target retirement fund for 2050. Anyone have experience with Vanguard?

Umbrix · 07-22-2007, 10:19 PM

Hah. You really need to be talking to my dad. He's the Life Insurance Salesman. The name sounds familiar, but since i really don't know all the lingo and stuff he's talking about, i'm not quite sure.

Sorry that I could be of no help.

Shadowblade · 07-22-2007, 10:28 PM

Quote:

Originally Posted by Umbrix

Hah. You really need to be talking to my dad. He's the Life Insurance Salesman. The name sounds familiar, but since i really don't know all the lingo and stuff he's talking about, i'm not quite sure.

Sorry that I could be of no help.

ha, no problem thanks for stopping in :P

Kelrathi · 07-23-2007, 12:08 AM

If I remember correctly, investing in a roth IRA may exclude you from investing in a 401K from your employer, or may face penalties or suffer some some extra taxation.

Shadowblade · 07-23-2007, 09:09 AM

Everything iv read seems to point to the fact that you can use both without penalty.

Shadowblade · 07-23-2007, 11:44 AM

I went ahead and opened a Roth IRA with their target retirement 2050 fund. I also opened a money market account with their prime money market fund.

Penz · 07-23-2007, 12:21 PM

Granted you dont have to pay tax on the accumulated wealth you will earn...but the name of the game is COMPOUND interest, not tax with those. Lets say you have 1000 dollars. One goes into a roth IRA at 30% (example) so you have 700 dollars in that account. Another is a normal IRA 1000 goes in there. After 30 years, assuming you contribute 50 dollars a month all of those years, 7% interest also.....
1000 starter = 69115.05
700 starter = 66680.1

After 45 years
1000 = 212753.2
700 = 205816.16

Time value of money is your friend
http://www.mortgage-a.com/mortgage_f...calculator.htm

Shadowblade · 07-23-2007, 05:46 PM

Im thinking of investing in an index fund as well. Anyone have experience with these? I'm thinking VFINX

07-22-2007, 09:02 PM	#1 (permalink)
Shadowblade Registered User Join Date: Jul 2007 Posts: 277	Investing for retirement I'm about to open a Vanguard Roth IRA with all of my money in VFIFX which is a target retirement fund for 2050. Anyone have experience with Vanguard? __________________ The truth may be puzzling. It may take some work to grapple with. It may be counterintuitive. It may contradict deeply held prejudices. It may not be consonant with what we desperately want to be true. But our preferences do not determine what's true. -Carl Sagan Looking to make some extra money?

07-22-2007, 10:19 PM	#2 (permalink)
Umbrix Back From The Crypt Join Date: Jul 2007 Location: Nebraska Posts: 282	Hah. You really need to be talking to my dad. He's the Life Insurance Salesman. The name sounds familiar, but since i really don't know all the lingo and stuff he's talking about, i'm not quite sure. Sorry that I could be of no help. __________________

07-23-2007, 09:09 AM	#5 (permalink)
Shadowblade Registered User Join Date: Jul 2007 Posts: 277	Everything iv read seems to point to the fact that you can use both without penalty. __________________ The truth may be puzzling. It may take some work to grapple with. It may be counterintuitive. It may contradict deeply held prejudices. It may not be consonant with what we desperately want to be true. But our preferences do not determine what's true. -Carl Sagan Looking to make some extra money?

07-23-2007, 11:44 AM	#6 (permalink)
Shadowblade Registered User Join Date: Jul 2007 Posts: 277	I went ahead and opened a Roth IRA with their target retirement 2050 fund. I also opened a money market account with their prime money market fund. __________________ The truth may be puzzling. It may take some work to grapple with. It may be counterintuitive. It may contradict deeply held prejudices. It may not be consonant with what we desperately want to be true. But our preferences do not determine what's true. -Carl Sagan Looking to make some extra money?

07-23-2007, 05:46 PM	#8 (permalink)
Shadowblade Registered User Join Date: Jul 2007 Posts: 277	Im thinking of investing in an index fund as well. Anyone have experience with these? I'm thinking VFINX __________________ The truth may be puzzling. It may take some work to grapple with. It may be counterintuitive. It may contradict deeply held prejudices. It may not be consonant with what we desperately want to be true. But our preferences do not determine what's true. -Carl Sagan Looking to make some extra money?

07-23-2007, 12:08 AM	#4 (permalink)
Kelrathi Registered User Join Date: May 2007 Posts: 131	If I remember correctly, investing in a roth IRA may exclude you from investing in a 401K from your employer, or may face penalties or suffer some some extra taxation.

07-23-2007, 12:21 PM	#7 (permalink)
Penz Member Join Date: Jul 2007 Location: San Francisco Posts: 196	Granted you dont have to pay tax on the accumulated wealth you will earn...but the name of the game is COMPOUND interest, not tax with those. Lets say you have 1000 dollars. One goes into a roth IRA at 30% (example) so you have 700 dollars in that account. Another is a normal IRA 1000 goes in there. After 30 years, assuming you contribute 50 dollars a month all of those years, 7% interest also..... 1000 starter = 69115.05 700 starter = 66680.1 After 45 years 1000 = 212753.2 700 = 205816.16 Time value of money is your friend http://www.mortgage-a.com/mortgage_f...calculator.htm

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