The Grand Caymans sound pretty good right now, it was something like -5 here this morning.
Finally got some pictures posted, with an update, over in the “remodel your house” thread:
http://talk.qa.collegeconfidential.com/discussion/comment/21086365/#Comment_21086365
@notrichenough - So glad the issue was found and that things are braced now. Good luck with the permanent repairs.
I have a question I hope you knowledgeable people can help me with.
I’d like to move some savings into an IRA. In the past, our income was so low that we put money into a Roth IRA. However, going forward, I think we might now benefit from a traditional IRA.
What type of traditional IRA would you recommend? CD or other? CD rates are so low but I am risk averse.
Is any there any particular institution you would recommend?
What is your timeframe to needing those assets, retiring? CD rates are pretty dismal and the goal of investing is to beat inflation and grow your assets for your retirement.
As far as companies, I’d look to Fidelity or Vanguard where you will find low fee options and goos customer service.
@doschicos I think H will retire in about fifteen years. I am several years younger, but I have been home with the kids and may or may not work again. We’ve been dealing with a mix of medical and special needs issues, and I almost anticipate going straight from this into caring for my mom.
I’m completely clueless about investing but I’ve heard of Fidelity and Vanguard before. Thanks! Maybe they have a “store” locally to make it easy for me.
To my knowledge, Vanguard doesn’t have a branch office network which is one drawback, however Fidelity does, @MACmiracle. Here is a list of Investor Centers:
https://www.fidelity.com/customer-service/branches/overview
Also, don’t hesitate to call the 800 number with questions or for guidance. Both places are well-versed at helping over the phone.
@doschicos Thank you for the link. I found a Fidelity office very close to home. A nice surprise!
I prefer Vanguard on the phone. The one time I went to a Fidelity office, they decided that I needed a “401k specialist,” and put me on the phone to one :))
I also find Vanguard’s website better, but I think I’m in a minority on that one.
@MACmiracle , CDs for extended periods will inevitably lose value due to inflation. If this is 15+ year money, put it in a target fund (e.g., Target 2035 Fund). That is a good choice for someone who doesn’t want to study. If you don’t mind studying a bit, read The Bogleheads Guide to Investing. The target fund will be fine.
You can still back door your Roth if you are over the income limits, for employee and SAHM spouse,each at 5500 or 6500 over 50. Not a ton but better than nothing, but extra to your 401K contributions. You should go to bogleheads for this talk BTW. They will tell you you can do this stuff yourself (set up and manage a brokerage account), don’t to pay anyone for it. Make sure you are clear on that if you talk to FIdelity, I don’t know if they like to steer you towards paid management or not.
My savings are split between vanguard and fidelity. I like fidelity cuz I have one person who meets with me and discusses any issues I have. For a newbie, I personally would choose this face to face meeting.
I don’t know what Boggleheads is…If I had to do it myself, I wouldn’t be able to stay in top of it like I should. Basically, I need something relatively secure that will grow my money for retirement without costing me more than it should. And if I start feeling like I’m being smoothe-talked I would probably get freaked out and walk away.
I have my Roth through the same company my insurance is through. I was thinking I might be better off going through another company for the sake of diversification. Is it “safe” to have all retirement investments, like Roth and traditional IRA, through the same company?
@MACmiracle , I would not have everything with an insurance company. The only thing I have with an insurance company is . . . Wait for it . . . Insurance.
Fido or Vanguard for investments. Maybe Schwab. There’s frankly nothing to “stay on top of.” I’m dumber than a sack of hammers and I do fine.
Go to Bogleheads.org (org, not com, it’s a non-profit) and look around. Look at their wiki.
There’s frankly nothing to “stay on top of.<<<<
Exactly, bogleheads will make it easier than you ever imagined. FAs make money out of fear and ignorance. FAs are paid by you, that money could be invested and earning, not paying for HIM or HER to go Cayman LOL. As you are a non working wife (same here), this is a perfect thing to take on IMO. You will have more time than your working spouse to do some research while empowering your involvement in your financial future.
" I’m dumber than a sack of hammers and I do fine."
Well we know that isn’t true but the rest of @IxnayBob’s post is valid. 
Either Fidelity or Vanguard will do right by you without excessive fees. You can always run any recommendations by us here and we’d happily give you feedback at that juncture as well.
@doschicos , I appreciate it, but in practical terms, whatever smarts I have are unnecessary to investing wisely.
Live below your means. Don’t be fearful or greedy. Stay the course. Don’t just do something, stand there.
You don’t have to be a genius to follow those rules.
Thank you, @IxnayBob , @doschicos , and @Sybylla .
And really, timing might be everything. A correction is always iminent.
True, corrections are always potentially imminent but you can also miss out on upswings waiting for those corrections as many folks have over the past year. Investing regularly and consistently, especially with a longer time horizon of 15 years, seems the most prudent IMO.
“Don’t be fearful or greedy.”
This is important and I feel investing in CDs falls into the fearful camp with a 15 year time horizon.
One of the posters on Bogleheads makes a great point to new investors - “If you’re not sure whether a Target Date Fund is right for you, it is.”
Meaning that the Funds at Schwab, Fidelity, and Vanguard called something like “Retirement 2030” have a perfectly reasonable and responsible mix of stock and bond holdings that are better than 90% of what a high cost (Edward Jones, Wells Fargo, UBS, etc.) advisor would put you in. Pick one that is about the right time frame for you.
If you feel like getting that last 10% of hand-crafted goodness from tilting and adjusting just the way you want it then read up, educate yourself, and plunge in. But if you want to live your life and let someone else keep your retirement investments balanced, these funds are great.
Of course the basic rules listed by @IxnayBob above need to be followed or it won’t matter what you invest in, it won’t be enough.
“They apparently don’t have the sense God gave a goat…”
Hey, we’re not that baaaaaaaaaaaaaaaad, dude.
Best,
Lil Shortay