What's a good way to get a retirement fund or IRA started working pt and in college and I'm 41 yrs old?

Question

Would like to start saving money each money towards my retirement but not sure what the best way to do that is, Do have a MMA w/ sharebuilder and some stocks through . them as well. But won't something where I can see my money grow more?What I have now is making me lose money then making a profit. HELP!!!!!

Answer 1

See if you can convert your MMA into a Roth IRA for starters. You can contribute up to $5K per year. Speak to a financial advisor -- get some recommendations from friends or family that you respect in financial issues. That advisor will be able to recommend a plan of action and probably be able to manage it at the same time.

If you have quite a bit of money in the MMA and you max out the Roth for this year then put the excess into something else that will make you money. You may even want to buy a house as an investment to rent out. That will give you a good tax break and also provide an appreciating asset. Right now is a very good time to buy.

Answer 2

If you are working with a company that offers a 401K, 403B or Gov't 457B, then go for that. You can set up pre-tax withdrawals automatically from your paycheck, which helps. At least for a 401K and I believe a 403B, you can borrow against it in the future if you run on hard times (and pay the interest back to yourself).

Otherwise, go to a place like Smith-Barney or JD Edwards or some place similar. They offer a free consultation and will open up an IRA account, Roth or Traditional, right on the spot. You may need $500 or $1000 to fund it initially.  You can also dictate how much control your financial planner has over your investments - everywhere from complete to none.

I have a Roth and I think it's setting me back $150 or so a year. I think that is pretty average.