IRA
I am 57 female with no retirement plan/401k. Was going to contact My ins. State farm (who I have been with for over 20yrs) re: IRA. Or which company would you recommend? Which IRA would you feel is the better option- standard or Roth? Thank you, ( I enjoy your advice giving on wgn news)
Terry Says
Well, State Farm is great for insurance, but they don’t have the least expensive investment products. And over the next ten years or more, that could make a big difference in your results. I would think you might want to go directly to Fidelity or Vanguard or T. Rowe Price to open an IRA. At your stage of life, you might want to do something a bit more conservative, such as an Equity/Income fund as opposed to a S&P 500 stock index fund. These three fund groups have both funds. Or you could do half in one fund and half in another.
If you open your account now, you can still contribute $7,000 for 2021 and then another $7,000 for 2022. As to Roth or traditional, if you can get along without the tax deduction, I’d choose the Roth. You’ll be paying taxes on your Social Security, so why not have the after-tax money growing in a Roth, which won’t be taxed if you hold for 5 years and want to withdraw it.
