I.R.A. ACCOUNT need more infromation?

Need to open a roth IRA account?

• I plan to open a Roth IRA account. 1. Which brokarage firm is good? I am thinking about Fidelity. 2. Can anyone please suggest long term good mutual funds? 3. Can I take my principle of the account lets say after 4 years if needed without paying any penalties/fees/taxes? Thanks.

• Answer:

  1. Fidelity is a good choice. I also like Vanguard very much. I've had a Roth IRA there for years, as well as several other accounts. Both firms have good low cost funds with good track records. 2. Go with an index fund, or a fund that is made up of several index funds. LIfe cycle retirement funds are great, and Vanguard and Fidelity have good ones. They automatically allocate your money between stocks, bonds, international, etc. Index funds are the cheapest to buy/maintian AND they perform better historically. 3. In an IRA (or Roth IRA) you can take the principal out with no penalty for several reasons: buying your first home, paying for school tuition for yourself or family, disability, etc. You will not have to pay taxes either, as you pay taxes on the money before you invest it. Good luck! The most important thing is just to contribute as much as you can. Don't worry too much about return until you have loads of money saved up.