Invest in IRA or individual investing like ShareBuilder?
Question:
or
open a Roth IRA through T Rowe Price for example. The Roth IRA will save taxes and commissions but is it the best investment vehicle.
Which has the least amount of fees.
I'm 21 and married, what is the best choice at this point in my life.
Answer:
You should always max out all tax shelter opportunities (IRAs, 401k's, etc.) before investing money elsewhere. You have many investment options with your IRA. Not only can you choose between hundreds of investment companies, you can also choose between multiple investment products at each company: mutual funds, index funds, bonds, money markets, etc. Unless you are an exceptionally savvy or lucky trader, the tax benefit of an IRA will almost surely be greater than extra gain you may (but probably won't) get by trading individual stocks. Contributing to a traditional or Roth IRA essentially assures you at least 15% in extra gain over the stock market. The tax benefit is even greater if you contribute to a Roth IRA when you are in a lower tax bracket than you will be in when you retire, which is likely the case for you, since you are still young.
I am a fan of Index Funds. Some of Fidelity's Spartan Index Funds, for example, have a cost basis of .10, which is exceptionally low.
There are many more options for you for higher return and tax advantages.
See resources below.
in regards to sharebuilder if you are BUILDING your portfolio then its ok it use them. Hoever for TRADING you would be better off with someone like scottrade and/or tdameritrade. Sharebuilder has some of the highest trading fees I have seen.
You could do both and most Roth Ira's will allow etf's and whatnot (but you better look at transactions costs and capital gains reporting on your income tax first).
21 and married hard to say. Does your workplace offer a 401k? then right now you really don't need a roth ira. But your best advice is consult with a financial planner then study it more.
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