should wife and i get a different roth?

[Guest calluke]

In the next few days, I am planning to begin a Roth with one of Vanguards target-date retirement plans. The plan is to deposit what we can each month. (between $150-$250).

Now I am wondering if I should also start one for my wife? We would give the min. needed to start one (1-3K) and then most likely only deposit once or twice a year if we get some extra income. The ultimate plan would then be for her to make larger contributions on hers when she goes back to work full-time in around 10 years. (home with baby)

If we plan to do this, would it be wise to have her start her own roth with a different company? Say T.Rowe? Or does it matter? I would think we could have a little more risk with hers, that's why i was thinking T.Rowe.

Thanks for any input!

[John G]

Roths are individual accounts. I in IRA is "individual".

There are many reasons why your wife should participate... to get her involved in investments, to make sure some of the marital assets are in her name, different choices for beneficiaries, etc. Where each account is located is a matter of your choice, what is convenient and what kinds of investments you plan to make. Mutual funds and brokerages tend to have a range of investments - so it is highly likely that there are a few funds you would be willing to use at each custodian. If you have two Roths in different funds, it may be instructive to compare their performance over time.

There are only 2 minor negatives related to multiple accounts: a little more paperwork to track, and you may initially end up with two annual fees.