re: thinking of either joining fidelity or edward jones..

So is this vanguard target retirement fund part of the roth? I have read on this fund and it seems like what i need. Can i open this amd a roth? Would that be wise?

Ok cool. Thats what i thought i was reading on vanguard but like i said im pretty clueless and really didnt wanna screw this up lol. But what im not grasping fully is the cost. It says 3000 to open a roth then 1000 to open the target date fund. So am i to assume a total of 4000?

quote:

---

It says 3000 to open a roth then 1000 to open the target date fund. So am i to assume a total of 4000?

---

Nope. A Roth is just a type of account, that's all, and most places want you to have a minimum amount to open it to make it worth their while to do the paperwork. I'm assuming that at the place you're looking into, they want a minimum of $3000.

Once you have money in the Roth you get to decide what to invest it. In this case, your first purchase needs to be a minimum of $1000. Since you have $3000 already in the account, you're golden.

BTW, don't forget to select the option to reinvest dividends and interest. If you don't do this, then dividends and interest will just sit there as uninvested cash.

Again - the institution where you open your Roth doesn't have to be Vanguard. For example, I happen to own some Vanguard funds in my Roth account - but Charles Schwab has the account. Schwab offers customers the ability to invest in literally thousands of funds, and most of them are not Schwab funds.

I think Vanguard gives you a break on fees (which are already pretty low) if you buy one of their funds in an account you hold with them though. When I buy a Vanguard fund in my Schwab account I pay an extra transaction fee (not much).

BTW, to my knowledge Fidelity is just fine. I just happen to like Schwab b/c I've been with them forever and have no reason to switch.

You pick the institution where you want to open your Roth (hell, it could be your local bank) but before you do, make sure you can invest in the funds you want to invest in. Not all institutions have the same fund offerings.

I have a Roth IRA in Vanguard and absolutely love them. Like the OP, I had relatively zero knowledge on what fund to invest in to start, so I went with the target fund as well.

Now that I have more knowledge under my belt, I have since exchanged shares for other mutual funds and have completely gotten out of the target fund. So keep in mind you have that option at anytime.

My employer 401K is through Fidelity and I really like them as well. No complaints whatsoever.

Keep this in mind, if you go with an IRA through Fidelity, Fidelity offers a simplistic rewards card through American Express that gives you 2% cash back deposits to your IRA on ALL purchases. No annual fees.

If you're like me and use rewards cards on all purchases and pay off balances within the month, thats a solid way to build up your portfolio in addition to your monthly contributions.

quote:

---

Not quite. The claim isn't that nobody can do it, but that doing it is a matter of luck and not skill. It probably isn't quite true but it's pretty damn close in most financial markets.

---

So if a manager was to get "lucky", how long would he have to be "lucky"?

quote:

---

Now though i need to start looking out for my family since my 2 year old little girl needs to be set up in case im not around.

---

I don't know how much you are talking about initially investing, but I would recommend having a term life policy in place while you build up your retirement. By the time the term runs out, you would (hopefully) have enough of a nestegg to not need a policy.

OK guys thanks for the knowledge, y'all have provided me with a ton of info and vanguard maybe my choice as of now.

quote:

---

So if a manager was to get "lucky", how long would he have to be "lucky"?

---

That's a question of statistical analysis, which is well beyond the scope of this thread.

I didn't say it's absolutely impossible, but I will say it is vastly difficult in an efficient market. Inefficiencies may exist, but the problem is knowing which knowledge edges are real and which are illusory.

quote:

---

thinking of either joining fidelity or edward jones..

---

Steer clear of Edward Jones. I having nothing to gain by deterring you from doing business with them. It's a heartfelt plea so that this industry will one day right itself from under qualified, commission chasing, unethical thieves. Most of their branches are revolving doors and they will be more concerned with their monthly commission quota rather than doing what is right for you.