newbie to Roth IRA-questions

[Guest Fia Yi]

Hi,

I am new to the whole Roth IRA concept. I was wondering if someone could answer me this: I have a mutual fund started through Janus and heard that you could dump your mutual fund into the Roth IRA account. Is this possible (or did I hear wrong) and how would this work?

Thanks,

Fia

[BPickerCPA]

Only cash can be contributed to a Roth IRA.

[Guest Fia Yi]

Thanks for the response,

So that would mean I would have to set up a Roth IRA in addition to my mutual fund? I guess I am trying to find the most effective way of stashing my money for retirement considering that I am 22 years old. Are there any suggestions as to who I should think about setting up a Roth with or does it matter?

Fia

[Guest Matt Tuttle]

It's the same deal as your regular account. If you like Janus you can use them or any other no load fund company. If you want advice you should seek out someone who can do that realizing that you will pay more (12b1 fees, etc) for full service.

Matt Tuttle

203-609-9077

http://www.wealthadvisors.bigstep.com

[John G]

Establishing a Roth IRA first requires that you select a "custodian" and the primary catagories for custodians include: banks, mutual funds or fund families and stock brokerages. Each custodian will typically offer a range of investment options, levels of service and annual fees. There is a lot of personal choice between the e-investing and walk-up tellers.

As a rookie investor, I would suggest that you initially consider "no-load mutual funds", which means funds that do not charge front end commissions. There are 8,000+ to choose from. For the next few years, you just need one or two funds. Why mutual funds? (1) To achieve considerable diversity - most funds own hundreds of stocks. (2) Small initial IRA contributions are difficult to invest in individual stocks, (3) Less time spent on investing decisions. {it makes more sense for you to spend the time you have in learning about investment basics then picking stocks}

You may want to read the March issue of Consumer Reports for a condensed list of mutual fund choices. Other sources include the web and magazines like Kiplinger Fincancial, Money, or Worth.