alec,

josh is the grad student guy with the question about earned income, so i think his ceiling is lower than $5k.

josh,

i don't know the answer to your question. hopefully someone else does!

josh - you can only contribute as much as you have earned (taxable) income, up to 5k. If you have no reported earned income, you may not contribute to the Roth.

U.S.A.
30k income for now - have approximately 500 - 1k to invest per month.
High risk tolerance (26 years old, hope to retire in late 50's or early 60's)
25 years+ time frame (in it for the long haul)
10k in student debts (4% interest)

I am a recent college grad and am now trying to get the rest of my life in order. I am mostly interested in long-term index fund investing with a diversified stock portfolio. Any advice on which online brokerages would be best for my situation is appreciated.

Sorry but I have another question. I was able to put ~1800 in my Roth IRA, as that was what my W-2 shows.

"Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2."

However I read that you can convert a Traditional IRA to a Roth IRA, would it be possible for me to put ~3200 in a Traditional IRA and then immediately convert it to Roth IRA? Somehow this seems like cheating, and I doubt it is possible - just wanted to double check. I did read that I would pay taxes on converting the IRA but since I make so little money I was wondering if it would be negligible?

that's called a "backdoor Roth" (hot, i know ) and is a pretty common technique for various scenarios. however, i don't know what the rules are for tIRAs and earned income. it's something you could investigate, but having established a Roth i would just use the rest of the "extra" cash to pay down your student loans.

it's hard to beat Vanguard for access to low-cost passive index funds, so that's what i use. other brokerages are fine and usually offer equivalent No Trade Fee choices but since everyone considers the VG funds to be canonical, i decided to just use Vanguard and these funds directly rather than constantly comparing e.g. "how good is Fidelity's small-cap value index vs Vanguard's?".

it's good to establish an account and all, but i would dedicate a good chunk of your "extra" cash stream to paying down that student loan debt.

josh - yes. Cripes, sorry for not even mentioning that earlier. Put 3200 in a non-deductible traditional IRA and then convert it right away. You have until April to do it for 2011.
I did that for all my younger clients who were over the Roth AGI limits.

donny,

it sounds like you've got a great start on saving for your future. i won't comment on the value of investing/speculating on individual stocks (except to ask: how sustainable do you think that 25% ROI is over the long term?). my recommendation would be very general: keep saving, max out your tax-deferred savings (for you this probably means a Roth IRA), define your investment goals and timeline, and build a well-diversified portfolio.

when it comes to building wealth, i'll take the "easy way out" any day.

if you think 25% is a small return and that betting on individual stocks is low risk, you're clearly a genius and don't need advice from me -- i would just keep doing what you're doing.

i invest exclusively in passive, index-based mutual funds so i don't think i can help you with this. there are other threads in this forum where people talk about individual stocks; perhaps that would be a better resource for you.

gl!

*doublepostsorry*

head to the pink sheets

have had my 401k without looking at it much but just got a statement and started looking around. here are the options i have to invest in. which ones should i pick? i can provide more info also.

Choose Your Investment Elections

* (Total must equal 100%) Total: 0%

Asset Classsort down Subclass Fund Name Current % Desired %
Blended Fund Investments -- RET INCOME & INVEST %
Blended Fund Investments -- VERIZON 2015 FUND %
Blended Fund Investments -- VERIZON 2020 FUND %
Blended Fund Investments -- VERIZON 2025 FUND %
Blended Fund Investments -- VERIZON 2030 FUND %
Blended Fund Investments -- VERIZON 2035 FUND %
Blended Fund Investments -- VERIZON 2040 FUND %
Blended Fund Investments -- VERIZON 2045 FUND %
Blended Fund Investments -- VERIZON 2050 FUND 100% %
Blended Fund Investments -- VERIZON 2055 FUND %
Bond/Managed Income Income PIM REAL RETURN INST %
Bond/Managed Income Other PRIVATE GLOBAL RE %
Bond/Managed Income International GLOBAL OPPORTUNITY
view restriction(s) %
Bond/Managed Income -- CONSERV FIXED INC
view restriction(s) %
Bond/Managed Income -- GLOBAL BD FUND %
Short-Term Investments -- MM PORTFOLIO %
Short-Term Investments -- INST GOVT MONEY MKT %
Stock Investments Large Cap US LARGE CO INDEX %
Stock Investments Large Cap US LARGE COMPANY %
Stock Investments Small Cap US SMALL COMPANY %
Stock Investments International INTL COMPANY INDEX %
Stock Investments International INTL COMPANY %
Stock Investments International EMERGING MARKETS %
Stock Investments Specialty PYR REIT COMGLD POOL
view restriction(s) %

do any of those investments have ticker symbols? expense ratios?

why are you contributing to this 401k? is this your only retirement account?

only ticker i have come up with is prrix

have tons of info like expense ratios

its company match and i am in the defaults... have been putting in the default 3% they match 6% so bumping up to that. figured that much out from reading this forum.

here is some more info

Investments 1 YR 3 YR 5 YR 10 YR Life As of Date
TARGET DATE FUNDS (TIER 1)
Blended Fund Investments*
RET INCOME & INVEST
Inception Date 12/29/2006 3.44 10.05 3.84 N/A 3.84 12/31/2011
VERIZON 2015 FUND
Inception Date 12/29/2006 2.68 11.16 3.23 N/A 3.23 12/31/2011
VERIZON 2020 FUND
Inception Date 12/29/2006 1.40 11.69 2.62 N/A 2.62 12/31/2011
VERIZON 2025 FUND
Inception Date 12/29/2006 -0.33 12.79 1.54 N/A 1.54 12/31/2011
VERIZON 2030 FUND
Inception Date 12/29/2006 -1.83 14.77 1.22 N/A 1.22 12/31/2011
VERIZON 2035 FUND
Inception Date 12/29/2006 -2.58 14.58 1.10 N/A 1.10 12/31/2011
VERIZON 2040 FUND
Inception Date 12/29/2006 -2.62 14.51 0.92 N/A 0.92 12/31/2011
VERIZON 2045 FUND
Inception Date 12/29/2006 -2.51 14.62 1.11 N/A 1.11 12/31/2011
* VERIZON 2050 FUND
Inception Date 12/29/2006 -2.45 14.65 1.13 N/A 1.13 12/31/2011
VERIZON 2055 FUND
Inception Date 01/04/2010 -2.44 N/A N/A N/A 6.11 12/31/2011

ASSET CLASS FUNDS (TIER 2)
Stock Investments
Large Cap
US LARGE CO INDEX
Inception Date 12/31/1990 2.12 14.19 -0.19 2.96 8.79 12/31/2011
US LARGE COMPANY
Inception Date 12/30/1994 -1.99 17.38 0.36 3.68 7.88 12/31/2011
Market Indices*
Russell 1000 1.50 14.81 -0.02 3.34 N/A 12/31/2011
S&P 500 Index 2.11 14.11 -0.25 2.92 N/A 12/31/2011
Small Cap
US SMALL COMPANY
Inception Date 12/30/1994 -4.04 20.45 2.25 6.16 9.62 12/31/2011
Market Indices*
Russell 2000 Index -4.18 15.63 0.15 5.62 N/A 12/31/2011
International
INTL COMPANY INDEX
Inception Date 04/30/1992 -14.23 5.07 -6.29 3.85 5.13 12/31/2011
INTL COMPANY
Inception Date 12/30/1994 -13.78 8.48 -3.58 5.82 5.87 12/31/2011
EMERGING MARKETS
Inception Date 12/29/2006 -20.98 20.33 2.62 N/A 2.62 12/31/2011
Market Indices*
MSCI EAFE Index -12.04 7.79 -4.57 4.84 N/A 12/31/2011
MS Emerging Markets Free -18.17 20.42 2.70 14.20 N/A 12/31/2011
Specialty
PYR REIT COMGLD POOL
Inception Date 05/30/1997 7.64 24.13 -0.85 10.74 9.61 12/31/2011
Bond/Managed Income
Income
PIM REAL RETURN INST
Inception Date 01/29/1997 11.57 12.69 8.36 7.87 7.75 12/31/2011
Other
PRIVATE GLOBAL RE
Inception Date 12/29/2006 12.77 -2.28 -4.14 N/A -4.14 12/31/2011
International
GLOBAL OPPORTUNITY
Inception Date 12/29/2006 7.79 9.65 1.57 N/A 1.57 12/31/2011

CONSERV FIXED INC
Inception Date 12/29/2006 2.87 2.97 3.60 N/A 3.60 12/31/2011
GLOBAL BD FUND
Inception Date 05/30/2003 3.28 7.45 5.98 N/A 5.34 12/31/2011
Short-Term Investments
MM PORTFOLIO
Inception Date 12/29/1989 0.23 0.38 1.89 2.20 3.93 12/31/2011
INST GOVT MONEY MKT
Inception Date 10/01/2009 0.00 N/A N/A N/A 0.03 12/31/2011

i don't see ERs in there. you also didn't answer my question about other retirement accounts.

i'm going to guess that you'll want a target retirement fund. i don't know anything about those Verizon funds (do you work for verizon?) but if they are substantially similar to the TR offerings from the likes of vanguard and fidelity, they're a good, simple way to instantly own a well-diversified portfolio.

ERs are on each individual page so they weren't included
i have a roth ira

so should i put all of my 401k in one of those verizon? last year i lost 2.45% and it was all in the verizon fund. i figured i'll leave that money that was invested last year in the verizon fund and try some of the others this year. see if i beat the verizon fund over that same time just for fun.

not that worried about it figure i can't screw much up since there are not many choices to begin with. if i suck ill just switch back to the default next year. just didn't know if in that generic info i post if anyone new anything about it or had any recommendations.

I think you would be well advised to ignore your instincts/impulses here. It won't end well.

As Tyler said, the Verizon 2050 fund is probably your best bet. It would be nice to know the ER though. You actually have some really good index funds in there, but I suspect, again, you would be better just leaving it and all new contributions were it is now.

Also, don't be results oriented. Your results for last year are about right. The stock market was relatively flat last year. It would be unreasonable to expect your fund to go up 10% when the market was flat. Every year will see dramatically different returns. Just keep piling your money into the 2050 fund, imo.

ER is probably the single most important number associated with a mutual fund, which is why you've now been asked about it THREE TIMES. i won't be asking again.

what do you hold in your roth? you should be thinking of all of your investments as a single portfolio. you want your portfolio to contain a broad diversification of stocks and bonds.

this isn't investing; this is gambling. see you in bbv in a year or so!

if there are any others you would like to see in particular i can get them.

appreciate the help a lot

VERIZON 2050 FUND

Snapshot
Actual Values as of Date Value
Quick Stats
YTD Return (12/31/2011) -2.45%
NAV (01/27/2012) $11.28
52 Week Low-High (01/27/2012) $9.75-$11.91

Average Annual Total Returns 1 (%)
as of 12/31/2011

1 Year -2.45
3 Year 14.65
5 Year 1.13
Life 1.13

Life is as of inception date 12/29/2006.
See additional performance information.
The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.
Top
Expenses & Fees
Expenses & Fees
Expense Ratio
as of 11/01/2011 0.68%
($6.80 per $1000)
Please see the fund's prospectus for information regarding fee waivers, reimbursements, and expense caps that may be in effect.
For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percent of the fund's total net assets. Where the investment option is not a mutual fund, the figure displayed in the expense ratio field is intended to reflect similar information. However, it may have been calculated using methodologies that differ from those used for mutual funds. Mutual fund data has been drawn from the most recent prospectus. For non-mutual fund investment options, the information has been provided by the trustee or plan sponsor. When no ratio is shown for these options it is due to the fact that none was available. Nevertheless, there may be fees and expenses associated with the investment option.

Keep in mind the cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings,but is only one of many factors to consider when you decide to invest in an option. Visit the Department of Labor's website for an example of the long-term effect of fees and expenses.
Top
Performance
Cumulative Total Returns 1 (%)
as of 12/31/2011

YTD -2.45
1 Month -0.11
3 Month 6.93
6 Month -7.87

Average Annual Total Returns1 (%)
as of 12/31/2011

1 Year -2.45
3 Year 14.65
5 Year 1.13
Life 1.13

Life is as of inception date 12/29/2006.
Quarter-End Average Annual Total Returns1 (%) as of 12/31/2011


1 Year -2.45
3 Year 14.65
5 Year 1.13
Life 1.13

Life is as of inception date 12/29/2006.
Quarter-End returns include all applicable recurring and non-recurring fees (including short-term trading or redemption fees) and changes, if any.
The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.
Top
Holdings
Major Market Sectors (%) 2 as of 09/30/2011
09/30/2011
Business Services 0%
Consumer Goods 0%
Consumer Services 0%
Energy 0%
Financial Services 0%
Utilities 0%
Healthcare Services 0%
Industrial Materials 0%
Media 0%
Software 0%
Telecommunications 0%
Hardware 0%
Asset Allocation 2 as of 09/30/2011
09/30/2011
Equities 76.5%
Bonds 10%
Cash and Other 13.5%
Foreign 23.8%

Turnover Rate as of 08/31/2011 21%
Top
Fund Facts
Fund Facts
Fund Inception 12/29/2006

Top
Prices & Distributions
Price History
52 Week Low-High
as of 01/27/2012 $9.75 - $11.91
Price On 12/31/2011 $10.69
Top
1 Average annual total returns include changes in share price and reinvestment of dividends and capital gains. Quarter-end returns include the effect of any applicable recurring and non-recurring fees (including short-term trading fees or redemption fees).
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Just stick with the 2050 fund.

eeee -

how old are you?

USA

$0 - Have roughly 1k to invest though

Medium Risk Tolerance

At least a few months while I studying investing. I'm in school for accounting and I study finance on the side. I just want a better place to stick my money than a checking/money market account.

8k Student Loans (no interest as of yet due to being in school)


I'm just looking for an ETF recommendation while I become more comfortable with portfolio building.

Do you want to invest this money for just a few months? If so, keep it in the bank.

No. Ideally I'd like a year or longer. I'm just saying the minimum is a few months.