[USER]

I hope this finds all of you healthy and well. I’ve got a question. My wife and I are not retired early. Yet. We are, however, doing well. I’m trying to make all the best choices for us and our children.

We are investing heavily into our employer sponsored 403B’s. But I want to start another retirement vehicle for the both of us. I’d like to open something for her and something for me.

I’d like to open each one with $2k…and just toss $150 into each one every month. Once day care expenses are over in a year, that will jump to 250 each a month. Then more and more salaries and life circumstances change.

I spoke to T Row Price. Our rep suggested a Roth IRA. I was thinking index funds. Is that essentially the same thing? What would your suggestions be for a 20 year plan.

Fidelity? Someone else? I’m all ears for people who know more than me.

Thanks, all.

[Richard]

Opening a Roth is probably the way to go and within your Roth invest in a high growth ETF like VTI or VUG. Both mentioned here are Vanguard ETFs, where we have some accounts.

Vanguard, Fidelity, Schwab are usually the names thrown out. You can find equivalent ETFs out there or similar index funds in each.

Aside from the Roth, you could do a brokerage account with someone like ETrade (or the three mentioned above, or some others) and invest in the same ETFs.

If you don’t know the benefits of a Roth for Taxes later in life, look into it and understand it.

Don’t miss: I have a question in regards to ETF vs index funds in post tax buckets

[Andrew]

Sounds fine. Research both T Rowe and Fidelity and choose one. Both are reputable brokerages. Give them a call and see which impresses you most. You DO need to get a basic understanding of how to start out. A Roth is an IRA.

Inside that IRA you can buy a huge range of products. Some of the best ones are well diversified index ETFs, which are very similar to mutual funds. Read up on VOO, and VTI and put all your money in ONE of them. Both are great vehicles for building wealth. I am partial to Fidelity, so don’t decide until you check them out.

Lots of reading material is available on their website.

[Piero]

I totally agree with you, your approach is very much valid.. good luck with it.

[Author]

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