Toolboxnj Posted March 17, 2009 Report Share Posted March 17, 2009 (edited) I personally like the ING Sharebuilder. So long as you have earned income, you can open a tax sheltered IRA. Or, if you pay little to no federal income taxes, a Roth IRA which is funded with post-tax earning may be a better bet. Just hope the government doesn't change its mind in the future about the taxes With Sharebuilder, you have automatic deductions from your checking account (monthly, bi-weekly or weekly) which are directed into investments of your choice. For $12/mo, you get 6 "transactions" which isn't bad when you consider that discount brokers charge $15-25 a trade. With the amount of ETFs (electronic traded funds) that are on the market, you can create a balanced portfolio using dollar cost averaging. Considering that it would only take $208 bi-weekly to max your retirement account, it's a good way to be disciplined and build wealth over time (not trading it away). Just be careful with your selection of investments. Fortunately, I have several retirement vehicles (not counting socialist insecurity) so I can diversify myself across the investment spectrum. You shouldn't dip into what they call "leveraged ETFs". Stick with sector-specific ETFs that spread risk, yet allow you to be a part of all markets. For instance, with my 401k that my employer contributes to, I tend to pick more broad investments such as an S&P index fund, a government bond fund, a TIPS fund. For my IRA, I am a bit more aggressive with the ETFs. I contribute to four: financials, energy, biotech and technology. It's ok that I have the overlap in the technology because my 401k broad index investments are much more diversified. Then I have the defined benefit plan (pension) which is invested for me. Then I have my play money in the trading account which I play with options strategies and more speculative investments. Truth be told, I've been hammered in the trading account over the past year but it's been fun. Remember to utilize the ONE gift that the government gives: the power to defer taxes with the IRA and 401k. It's a shame that people don't take advantage of the opportunity. Personally, I try to contribute everything I can (about 20% of my gross salary right now) because every additional dollar I invest, that's one less dollar I'm not taxed on (right now, anyways... but I can better manage the taxes later in life). It really helps lowering the tax bill. Edited March 17, 2009 by Toolboxnj Quote Link to comment Share on other sites More sharing options...
softwareNerd Posted March 17, 2009 Report Share Posted March 17, 2009 I personally like the ING Sharebuilder. So long as you have earned income, you can open a tax sheltered IRA. For instance, with my 401k ... I haven't used an IRA for a long while (except for "rollovers"). Isn't there a rule against opening an IRA if one's company offers a 401(k). Quote Link to comment Share on other sites More sharing options...
softwareNerd Posted February 27, 2010 Report Share Posted February 27, 2010 I am somewhat wary of the Rich Dad, Poor Dad series because I listened to a Prodos interview with the author, Robert Kiyosaki, who was at an anti-capitalist thug rally in Australia and spouted all kinds of nonsense about how corporations destroy the world. Even though I haven't read the books myself, I wouldn't know what to expect from someone who accepts such a premise. According to CBC television, Kiyosaki seems to be a scam artist. Quote Link to comment Share on other sites More sharing options...
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