Best place to start Roth IRA....Dave Ramsey |
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spikeymikey
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Best place to start Roth IRA....Dave Ramsey |
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I am reading Mutual Funds for dummies and have read 2 of dave ramsey's books. I am debt free and ready to start my Roth IRA. I am 23 and have a 401k that my company contributes 4% of my salary even if I don't put anything in. Dave Ramsey has Endorsed Local Providers. The ELP for my area is UBS. Mutual Funds For Dummies and Everyone and their mom, including my grandfather (who is a milionare) says Vangaurd or Fidelity. If you go with Vanguard or Fidelity Can you only choose from their funds?? and if so is that a big enough reason to go with someone else???
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Tue Oct 31, 2006 8:24 pm |
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BlankenshipFP
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This is one of the places where Dave Ramsey and I part ways, possibly the only place: For whatever reason, he thinks you should buy loaded funds from his ELP network. I've asked his organization about this in the past and they don't seem to have an answer - who knows, maybe he gets kickbacks?
My opinion is that if you have done the homework and are in a position to make your own investment decisions, you can go to one of the no-load mutual fund companies and open your account, and make your investments. In a situation like this, the ELP is bringing no value to the table, so why should you pay him 4%-5% just because Dave thinks they're groovy people? Go with your instincts on this one - use no-load funds at a mutual fund company.
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Nov 01, 2006 3:45 pm |
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spikeymikey
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yeah, I agree I don't know why he recomends them either. I really think the rest of his advice is great stuff but I guess nobody is perfect.
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Wed Nov 01, 2006 9:35 pm |
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spikeymikey
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quote: Originally posted by muneepenee 1. wot cha meen..."kumpany put in 4% even if I dont"
I dont beleev that. I thank the kumpany transfer 4% av yer pae intu the 401k unless yu tell em not tu.
2. If the kumpanee put in NE av theer munee, thats kalled a match.
evreeweer me ever herd av, the kumpanee match is a % av the $ yu put in
(up tu a limit). most kommon match is 50%...kumpunee add tu yer akkount 1/2 av the $ yu put in.
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3. bout IRA:
Yu kan open IRA akkount with NE mutual fund kumpanee yu feel like.
If yu want, yu kan hav 50 such akkounts. And at eech fund kumpanee,
yu kan spred the munee tween 50 funds if yu want.
I hav all mi ira at Vangard...spred over 3 funds (but I hav 1,000,000$ theer). Yer better off with 1 fund kumpanee & probablee 1 fund til yu hav more speereeans.
4. best funds: Vangard, T Roe Pries.
5. me never herd av "lokal endorsed providers"
Yes My company wal-mart put 4% of my gross salary into my 401k/profit sharring. They do this for everyone that works there. Weather you put 10k a year in or nothing...they give you the money. After 7 years you can roll the profit sharring (which is almost all wal-mart stock) into your 401k.
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Thu Nov 02, 2006 2:21 am |
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spikeymikey
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quote: Originally posted by coaster 4% of your gross salary is 4% of your money.
No its not like that. I mean If I make $50,000.00 a year then they put $2,000.00 in. My pay isn't reduced at all.
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Thu Nov 02, 2006 2:26 am |
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efflandt
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Location: Elgin, IL USA |
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It is unusual for a company to contribute to a 401(k) without any contribution from you. My company matches dollar for dollar the first 3% of my salary contribution ($1200 match limit). The match is usually to encourage participation so "highly compensated" employees are allowed to contribute more. The gov't has anti-discrimination rules that can limit contributions for higher ups based on average participation.
If you want Vanguard funds then that might be the place to go. But if you may want to get into ETF's or stocks, last I checked their trade fees were $29.95 (higher than Fidelity). Many of their funds have $3000 min. initial purchase (some $1000).
Fidelity has over 1000 mutual funds that have no transaction fee. Although, non-Fidelity funds may have longer minimum holding periods, so choose wisely. Minimum initial purchase for mutual funds is generally $2500 (maybe less with auto contributions). Retirement accounts pay almost 5% interest for core cash (~3% in taxable accts). I think they charge $75 for Vanguard funds. Fidelity's stock (or ETF) trade fee is $19.95 ($10.95 if $50k total assets in household accts).
There are other discount brokers that have lower stock trade fees. But they get your money one way or another, by not paying as much for idle cash and/or charging a purchase fee for no-load mutual funds.
I don't know the best thing to invest in right now though, because October sort of ran away and there are mixed signals for the near future.
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Thu Nov 02, 2006 4:03 am |
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spikeymikey
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quote: Originally posted by coaster Ah, OK, I see: if your gross salary is $50K, they put in $2K of Walmart funds even if you don't put anything in, and you still gross $50K. That's pretty unusual. First I've heard of it. I'm curious: how long to vest the Walmart contribution?
well the 4% is split 2% into 401k and 2% into profit sharring....the 401k is automaticly yours but with the proffit sharring you are 100% vested after 7 years....but you get some each year before....ie: 1 year 20%, 2 years 40% and so on...
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Thu Nov 02, 2006 7:18 am |
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rvalmeeki
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As per my knowledge his advice is good. You can go with it.
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Tue Nov 27, 2018 9:59 pm |
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