I just finished to process of opening two Roth IRAs.Â The annual contribution for 2006 is $4000, and I hope to contribute at least a portion of this amount to my account and my wife’s account before April of 2007.Â My next goal will be to make/save an additional $8000 to fully fund the two Roths for 2006.Â Tradeking is my brokerage.Â Stocks and ETFs trade for $4.95 per trade.Â No-load mutual funds trade for $14.95 per trade.Â I will not purchase mutual funds.Â I will be depositing as much money as I can before April of 2007, and I will make one purchase in each account.Â I will purchase a single ETF and let it “ride” for a year.Â Most of my retirement investing will continue to take place inside my 403b account.Â At the end of April, my retirement savings should be broken down as follows:
30% Small Cap
S&P 500 ETF
My Wife’s Roth:
S&P 500 ETF
As you can see, I have a rather “aggressive” 403b portfolio and a rather “boring” Roth portfolio.Â I realize the “risk” associated with an “aggressive” 403b account, but I feel that I am young enough to take a few chances.Â I closely monitor my 403b and I am poised to move into a “less aggressive” position if the need should arise.Â Currently, even with the confusion of the last few days, my 403b is still in positive territory for 2007.Â As for using ETFs, I have learned over the years that I do a very poor job of picking individual stocks, and I like the idea of “indexing” with ETFs.Â As I learn more about investing, I am sure that I will change my investing habits.Â For now, I am super-focused on FUNDING THE ACCOUNTS.
Oh yeah.Â If you’d like to open a Tradeking account, use my contact form and I can send you a referral and we’ll both get $50!