Which Roth IRA company to go with?

Mazeroth

I think I'm set on starting a Roth IRA but am not sure where to sign up with it. I wouldn't mind doing a monthly automatic contribution or a few per year, whatever is cheaper. Any pros/cons to different companies and which ways to invest are greatly appreciated. Oh, my wife and I are in our late 20s.

Thanks.

madmax

Just wondering, why a Roth? A Roth is taxed when you put the money in and a standard IRA is taxed when you take your money out. In the past (for as long as I can remember) most people counted on having lower taxes after they retire and therefore chose the standard IRA. I've noticed in the past 2 months everyone on the talk shows have changed their tune to promote the Roth due to not knowing how much taxes will go up if Hilliary gets into office. Is this a reasonable change due to some fact or just a political thing which will change after the elections? I really don't know but it might be worth looking into.
madmax

Polkersince85

You may want to look at what Vanguard has to offer. Low fees and rock solid. IMO, a Roth is better option, can withdraw your contributions w/o tax, contributions and earnings can be inherited; a biggie.

Mazeroth

Thanks, I'll look into that.

kingtut

Second the Vanguard suggestion, low fees -- but higher initial investment amount ($3K to start). T. Rowe Price is another good company.

kingtut

Madmax,
With a Roth, you pay taxes upfront, but $ invested will grow tax free vs. tax deferred for 401K. By the time we retired, our mortgages are probably paid off, so there will be no mortgage interest to write off. This tend to bump most people in a higher tax bracket. Roth investment is w/drawn tax free at the time of retirement. It's a better deal for most people, especially for younger folks in their 20s and 30s.

madmax

kingtut wrote: »

Madmax,
With a Roth, you pay taxes upfront, but $ invested will grow tax free vs. tax deferred for 401K. By the time we retired, our mortgages are probably paid off, so there will be no mortgage interest to write off. This tend to bump most people in a higher tax bracket. Roth investment is w/drawn tax free at the time of retirement. It's a better deal for most people, especially for younger folks in their 20s and 30s.

So its assumed you will still be working or you will be taking out larger amounts? Most retired people I've known don't have enough income to make it worth filing income tax. Just trying to understand.

RuSsMaN

Third on Vanguard, been a client for years and never looked back.

kingtut

madmax wrote: »

So its assumed you will still be working or you will be taking out larger amounts? Most retired people I've known don't have enough income to make it worth filing income tax. Just trying to understand.

That's true that many people don't save enough for retirement. The info I wrote on Roth IRA included the assumption that a retiree saves enough for retirement. For a young person in his/her 20s or 30s, putting 10% of his/her income in a Roth IRA ($4k max per year) and 401K, in stock mutual funds, should be sufficient in retirement.

Demiurge

American Funds