Saving for Retirement - Help!

[spud912]

I opened a roth IRA 2 days ago and plan to add monthly. However, being that I know nothing about investing, I didn't realize that I have to decide how to actually invest that money.

Does anyone have any experiences with roth IRA's and how I should invest my money???

[NoMoreJuice!]

There are so many things to consider. Your age and expected years of contribution are the biggest. The younger you are and the more time you have to build your retirement fund, the bigger risk you can afford to take, and you should invest in the riskier stocks and funds. If you're more conservative and the market worries you, consider more bonds and safer investments. You definitely should seek out a professional to give you more guidance.

[spud912]

I am 34, so I have about 31 years before I plan to retire. My dh has a 20-year pension so I know we will be ok when he retires, but I wanted something more that can also be used for education if we need it for our 3 children.

I'm thinking of more aggressive stocks (maybe 50/50 or even 75% stocks) for now and then tapering off to safer investments.

I think I might just contact a professional. I would rather not rush into something and then find out I messed up all of our hard work.

[laundrymom]

Don't rely on that pension
I would definitely discuss hiring a financial advisor

I am 34, so I have about 31 years before I plan to retire. My dh has a 20-year pension so I know we will be ok when he retires, but I wanted something more that can also be used for education if we need it for our 3 children.

I'm thinking of more aggressive stocks (maybe 50/50 or even 75% stocks) for now and then tapering off to safer investments.

I think I might just contact a professional. I would rather not rush into something and then find out I messed up all of our hard work.

[Ariana]

Definitely hire a professional but also do your own homework. We had a crappy investor that lost us lots of money. Luckily we had money flowing to two different accounts so we were able to see how well he was doing versus the bank. The bank was doing a much better job for us.

Also not to spook you but pensions are not always guaranteed. My father worked for 35 years and because the company he worked for is now filing for bankruptcy he is losing his pension and benefits...yes they can do that! He will get the portion that was guaranteed by the government but that is it and is only a small part of his pension. My dad was lucky that he also had a retirement savings plan and invested in real estate. Just something to think about

[NoMoreJuice!]

If it's college savings you're most worried about, consider opening a 529 plan. Tax deductible, great benefits for the kids, and it doesn't take a huge monthly amount to see a big investment grow by the time they're 18!

[spud912]

Also not to spook you but pensions are not always guaranteed. My father worked for 35 years and because the company he worked for is now filing for bankruptcy he is losing his pension and benefits...yes they can do that! He will get the portion that was guaranteed by the government but that is it and is only a small part of his pension. My dad was lucky that he also had a retirement savings plan and invested in real estate. Just something to think about

Ugh that's awful for your father . My dh is a government employee and the pension is through the state of Arizona, so hopefully that is secure !