Beginner basics - how to get started

[Guest andyandy]

I have a 401(k) from a previous employer (a little over $31,000) that I would like to roll over to a Roth IRA. If I understand correctly, I'll need to roll the 401(k) to a traditional IRA, then roll that to a Roth IRA and take the tax hit.

Can someone confirm this for me?

Also, can I roll a portion of the traditional IRA (say 50%) in 2004 and the rest in 2005 to reduce this year's tax hit?

Also, I would like to know where to invest this money. I'm looking for the most aggressive investment for my Roth IRA that I can find. My goal is to earn as much as possible in the Roth IRA, since I won't be paying taxes on the gains. Also, I can be a little less aggressive in my 401(k) with my current employer to balance my risk. And, since I'm 31 1/2, I have 28 years to go to reach the magical age of 59 1/2!

Any suggestions would be appreciated.

Thank you!