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Chrysopylae

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Everything posted by Chrysopylae

  1. Before you take action, you might want to ask a few additional questions. You said you are married. Does your spouse work? For himself or someone else? Does your spouse have a retirement plan at work? If your spouse has a retirement plan at work, are contributions matched? If so, what is the vesting schedule? If the vesting is not immediate, does your spouse plan to leave the company in the near future? Is your spouse maximizing contributions to his/her retirement plan at work? If you consider opening an IRA: what is your combined AGI? do you file jointly or separately? Do you have any financial issues that could lead to a bankruptcy? How much do you and your spouse plan to contribute to retirement each year? Please note, I am not recommending that you divulge your personal financial information on a public forum. Part of the reason I suggest answering the above questions is that you might have additional, more suitable options than your 403B or IRA. Also, depending upon your combined income, you may not be eligible to fund a Roth IRA in part or in whole. Regarding bankruptcy, if you might become bankrupt, then creditors may have access to certain types of retirement account funds, but not others.
  2. Ant, In regard to your questions about contributions to your Roth IRA and transfers between Roth IRAs, you may find many answers in Publication 590 on the IRS website: http://www.irs.gov/publications/p590/ar01.html#d0e183 Here are some excerpts that you might find helpful: “ If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: $4,000 ($5,000 if you are age 50 or older), or Your taxable compensation. However, if your modified AGI is above a certain amount, your contribution limit may be reduced, as explained later under Contribution limit reduced. “ “You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions).” So if you do your taxes in April, you may be able to count contributions in January, February, and March for 2007, but be sure to specify the contributions are for 2007 and do not go over your 2007 limit. I highly recommend you enquire with the company holding your Roth IRA to be sure you do it correctly before sending in the money. “You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA. Most of the rules for rollovers, described in chapter 1 under Rollover From One IRA Into Another, apply to these rollovers. However, rollovers from retirement plans other than Roth IRAs are disregarded for purposes of the 1-year waiting period between rollovers. A rollover from a Roth IRA to an employer retirement plan is not allowed. A rollover from a designated Roth account can only be made to another designated Roth account or to a Roth IRA.”
  3. Hi Ira, Thanks. Part of the reason I was suggesting considering alternative funds is that other funds may allow ant to start with a smaller amount rather than waiting several years to accumulate $21,000 to begin or diversify his investments. I know this particular thread isn't dealing directly with SRI, and I don't want to take it far off course. So briefly, some of my reasons for suggesting SRI are: 1) It's cheaper in the long-run (and I'm hoping to live for the long-run) not to create environmental problems in the first place; 2) I want to support executives who share my concern for the welfare of the earth and my fellow human beings; and 3) I dislike the idea of profiting from immoral actions and then using part of those ill-gotten profits for charity. That said, I absolutely agree with you that each fund should be carefully screened to be sure it upholds the same values as the investor. As to the broker, some discount brokers (e.g. Scottrade) do not charge additional commissions for purchasing funds that pay a 12B-1 fee. My thought was simply that if one is going to buy one or more funds with a 12B-1 fee, it might be easier to track them in a single account. I'm not recommending buying funds with 12B-1 fees, I'm just putting that thought out there. Anyway, that's my two cents. I'm enjoying the discussion.
  4. Are you still open to alternatives to Fidelity and Vangard? If you are open to Socially Responsible funds, you may find a lists at www.socialinvest.org or www.socialfunds.com. Many of these funds will allow you to begin investing with them directly (you can open Roth IRA with the fund company) for less than $3,000. Also, some have options for smaller starting contributions if you plan to add contributions in future months. Alternatively, you may invest in several of these funds through a broker. Check with the broker to see if you will be charged an additional fee. Starting with a broker has the benefit of locating your information all in one place.
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