thinking of opening a roth ira, need advice

One more thing, the Knowlege you will gain from reading bogleheads will be of much value to you. It has for me!!

http://www.bogleheads.org/forum/index.php

 

Thanks for the info, haha I know it wont go up 22% every year.

 

Didn't see it answered, but your original question of withdrawing from it...you can withdraw your contributions at any time for any reason from a Roth without penalty. Just not the actually earnings your contributions make. That's the main reason I like a Roth IRA. You can access the funds if you really need them

 

Would it be a bad idea to invest money if the government is going to reduce QE. Or is it not a big deal for a long term investment.

 

my opinion/advice: 1) start investing in your Roth IRA 2) contribute the money to the Roth w/ an anticipation that it is "hands off" until retirement... 3) vanguard is good investment firm... 4) go w/ a few different fund choices, the targeted fund is fine, but you might want to also include some more stock-heavy growth funds as well (higher risk/reward given your long time horizon) 5) do not use your retirement funds for "rainy day" funds/loans... keep separate finances for paying off debt, buying things you want/need, etc... having cash reserves (i.e. bank accounts) is good because it's so liquid. unfortunately the fed's suppression of interest rates makes a climate unattractive to savers. 6) be sure to spread your good sensibilities on retirement/saving to your peers 7) also, of note, ...many employers offer "roth 401k" plans, which are roth contributions made from your paycheck (a nice option if your employer has such plans)...

 

I think the 2060 and 2050 funds have around 90% stock is that not enough?

 

....i'd probably try to add at least another fund (besides the target fund) to your portfolio... target funds start out stock heavy, but are probably not as aggressively growth oriented as other such funds that are designed to be... since you're so young, there is incentive to diversify your portfolio, and this would include some aggressive growth in the mix... for example, in my retirement portfolio, i have a target fund, but also several other funds for say, small cap, mid cap, and large cap growth... diversify, don't put all the eggs in one basket...

 

OP,

Lots of good advice being shared here with you on the forum, but I have to agree with the above quote.

I have used a good, certified financial planner for many years. Even with his fee, which is extremely reasonable, I obtained a 16% gain in my portfolio last year.

I trust my financial planner, he is the expert, he has the information and the expertise needed to make me money and manage future trends. He always asks for my input and directs me to the best strategy for my investment.

As some of the other posters have mentioned, I too praise you for being 22 years old and figuring out how to plan for your future. I started with a sharebuilders account at a firm in 1973 and the funds have grown so I was able to retire comfortably at 55 yo.

Good luck in your quest, and remember only liars continually buy low and sell high.

 

So i need to buy stock in January

 

According to the graph(?), you need to buy in late March or early April. At least that is the inference I make from the historical data provided. Remember trading practices were much different for the DJIA in 1928 and 1929.

 

Long and short, a Roth IRA is a great investment tool. Yes, you can access your contributions at any time, and both contributions and earnings are tax-free (as long as you follow the rules). It's also awesome that you want to invest at such a young age. That being said, you seem to be bouncing around a lot with your ideas and questions, which makes me think you should REALLY sit down with a respected financial advisor and develop a financial plan for yourself. I personally stay away from PM, but obviously other people use them as an inflationary/recession buffer. At your age, I think that's the last of your investment worries (honestly, a recession is good for you, because your money buys you more shares). But yeah, see a professional.

 

PBStang65, Sorry about the typo Patrick,

Well said and good advice from you to the OP about seeking professional advice. Like him, I commend you for starting to invest at an early age.

Both my children, (in their 30s) have seen what investment at a young age can do to ones lifestyle.

In a few years you fellas can join me on the beach in Aruba or Tahiti.

Good luck with your investments whatever they may be.

 

Thanks for the input probably a great idea.

 

Thanks! I wish more of my friends were like myself and the OP. So many people sacrifice their long-term financial security for short-term gains (drive a new truck, parties, trips, shopping, etc.). I'd much rather sacrifice a little now to be able to do all kinds of awesome things later in life.

 

No need to be embarrassed man. I took it as a sign of enthusiasm, which is awesome. Sometimes it's hard to decide between the endless options out there. Having another person explain things to you helps greatly. I do the same thing, and heck, I work in the financial industry.

 

You guys are on track to a bright and prosperous future. Even oldies like me who never took the time to plan and did the partying, shopping, new trucks etc. are in trouble. My cohorts that did not invest don't have the opportunity to change or many options to rely upon. I knew I never wanted to be working at 70 or 75 like many of my friends and relatives will.

Again, I commend you both. Keep up the planning.

 

Most of my friends are the same way to. Most don't even set aside money for emergencies.

 

When this happens, you will more than likely see a correction in the market. However, that is what the market does, it goes up and down. You just need to keep in mind that when the market goes down, that is a great time to buy at a discounted price. You dont need to worry about your shares loosing value short term because you know historically the market will go up over a long period of time.

So the sooner your money is in the market and the longer you leave it, the better chance (statisicaly) it has to provide you with great return.

 

So maybe start slowly investing now, just dont put all of it in yet.

 

Well I just found out the bank I use has a FA, I think it a free service since I bank there.
How would I tell a good FA from a bad one?