I currently own my own business and i would start putting away the max amount allowed in a IRA. What would be my best choice for an IRA. Also how do ira's work do i pick the stocks i want in there. Does anyone know of a good site to go to to get a good IRA portfolio that would be a decent return each year. Also what broker has the best and easiest IRA to setup
I'm not an accountant but if I remember my old accounting and finance classes from college as a self-employed person you would probably be best in something called a SEP-IRA. While it's up to you I would avoid brokers and individual stocks. Look as some the larger on-line brokerages (E*Trade, Scott Trade, etc) or mutual fund companies such as Vanguard, Fidelity or T Rowe Price. All of their web sites should have the proper information to get you started. Again, I would look more toward index mutual fund (S&P 500 or Wilshire 5000). You don't list your age or appetite for risk, so any portfolio would depend on those.
Oh yea, I forgot to add that IRA's allow you to put away "before-tax" money, let it grow tax free until you reach retirement. Once you reach a certain age (I believe 59), you can start withdrawing money, however at that time it is taxed at your ordinary income tax rate. Their is something called a Roth-IRA where you put after tax money in and then can withdraw it at retirement tax free. There is lots of information out there to learn about retirement planning on the web. Best of luck to you.
As long as you don't have any empoyees the SEP is the way to go. You can put 25% of your income or 42k.
As for buying index funds, I do not subscribe to that theory for many different reasons. But only buy individual stocks if you have the time to thoroughly analyze them. If not use a good full service broker. They are out there believe it or not...
The advice that you would get as a business owner would far outweigh any advantage gained by saving a bit on comissions. My two cents.
As for buying index funds, I do not subscribe to that theory for many different reasons. But only buy individual stocks if you have the time to thoroughly analyze them. If not use a good full service broker. They are out there believe it or not...
The advice that you would get as a business owner would far outweigh any advantage gained by saving a bit on comissions. My two cents.
