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I opened a Roth with Fidelity, anybody have any useful tips on maximizing my returns? I'm pretty clueless when it comes to finances.
Roth IRA
- Thread starter Pharmist1720
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According to www.irs.gov:
A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.
My best guess would be to keep making contributions and try to abstain from taking money out of it. I hear that Roth IRAs tend to have better interest rates, so the more principle you leave in the account the more you get in interest.
A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.
- You cannot deduct contributions to a Roth IRA.
- If you satisfy the requirements, qualified distributions are tax-free.
- You can make contributions to your Roth IRA after you reach age 70 ½.
- You can leave amounts in your Roth IRA as long as you live.
- The account or annuity must be designated as a Roth IRA when it is set up.
My best guess would be to keep making contributions and try to abstain from taking money out of it. I hear that Roth IRAs tend to have better interest rates, so the more principle you leave in the account the more you get in interest.
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FFNOX - Fidelity Four-in-One
Low cost index fund
Diversified in international, domestic and bonds
Set it and forget it
Also you could try one of the Target Date Retirement Funds.
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I just switched over to Roth 401K myself (was an option for us beginning this CY)....
Pharmcat,
If you want to maximize your returns I would recommend finding an investment advisor who can assist you with your investment accounts rather than asking your peers who probably do not fully understand the intricacies of the financial markets (no trying to offend anyone but the MF recommended is over-diversified and to quote the best investor of our time, Warren Buffet, "Wide diversification is only required when investors do not understand what they are doing")
Keep in mind there are multiple types of people who call themselves investment advisors. You want to ask if they are commission or fee based. Commission based means that they essentially salesmen who follow a suitability standard while a fee based advisor (tied to an RIA) follows a fiduciary standard. Do you want someone to sell you something or someone who puts your interests before their own?
If you would like my professional recommendations feel free to PM me as I would be more than willing to help.
