Quote:
Originally Posted by CareyM
We have invested in Roth IRA's, I believe they are very safe. Personally, I'd call a local financial advisor before I did anything with a 401k.
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oh my goodness. you really need some lessons in financial planning.
a Roth IRA is NOT an investemnt. It is a qualiified account from which investments can be made.
you invest in
Stocks
Bonds
Money Markets
CDs
Realestate
Precious medals
You can invest directly in these or you can invest in some pool investment like a Mutual Fund or an REI (mutual fund for realestate)
IRA, ROTH IRA, 401K, 403B, Medical IRA, Pension Plans etc are all different types of accounts from which investments can be made.
MOST 401K plans have a limited number of choices that an individual can pick from for investment. Generally companies that have 401Ks have some access to people that can help you choose.
For those that do not have that kind of advise, your best choice is to find a financial planner who charges by the hour. NOT one that works for a company where the FP recieves commission from the products they sell.
That doesnt mean a guy that works for Fidelity wont give you good advise, it just means, his advise will lean towards his own line of products and when you are in a 401k situaiton, you need indepenant advise.
for people in their 30s this is a good rule for investing
40-45 large cap
20-25 small cap
10 International
5 - Bonds
15 - Index plus (personal decision)
as you age, you shift more toward Bonds and large cap to reduce your risk exposure.
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