Where to get a "GOOD" Roth IRA

[Guest PTMeinert]

Is there a list of the top performing Roth IRA's? How do I pick a Roth IRA? Who can I contact to get an Roth IRA?

[bzorc]

Just about any bank, insurance company, stock broker or mutual fund company will offer Roth IRA's. If you contact any of these institutions, they will be able to tell you all you want to know about Roths!

[John G]

You sound like someone very new to investing. A Roth IRA is a custodial type tax shelter that allows thousands of options: brokerage accounts, bank accounts, mutual funds, etc.

I am assuming from your question that you may be refering to mutual fund choices... there are over 8,000 in that catagory alone. You can find performance data in the Wall Street Journal, Kiplinger Magazine (a good choice for a novice), Money, Worth, Forbes, and even an occasional issue of Consumer Reports (March?). There are also lots of web sites with mutual fund and investing choices. You may want to subscribe to a general investment newsletter such as Rukeyser's (who has the PBS show "Wall Street Week" and a web site of course). Another choice is to visit your local library or bookstore.

However, I do not recommend chasing the best performing fund from last year, investment styles go in and out of favor, so last years great performers can be "dogs" this year. Each mutual fund has a prospectus that tells you the investment "style", largest holdings, recent performance, rules, fees, etc.

You don't need spectacular performance in any one year to typically reach your goals. An annual investment return of 10% - 14% is likely if you put your funds in growth orientated stock fund. Investing has no guarentees, reward is ussually coupled with the level of risk you take. For folks just getting started, a basic "blue chip" or index fund can make a good first choice.

The large mutual fund families (Janus, T Rowe, Vanguard, Fidelity, etc) have multiple mutual fund choices and pamphlets for beginners. Ask for their starter package. You should also ask questions about minimum opening balance, fund objective, and custodial fees.

Initially, all this information may be a little overwhelming, but keep plugging. The Roth can be a very attractive investment choice.

[This message has been edited by John G (edited 12-27-1999).]