Roth IRA’s can be self directed stock accounts, hold real estate, or many other types of investments. They need to consider what type of investment and what they hope to achieve when they start collecting their tax free distributions at 59 and 1/2. This is where Mutual type funds are a very good choice. https://www.fidelity.com/ refered to you earlier by skfinkel is a very good quality choice. If they are like you, and interested in learning more about stocks they can open an account at Scottrade for their ROTH as well.

thanks. you seem to be around every time I ask something. :-) thats awesome.. I guess thats where my confusion starts with the investing. The more I read, the more I see that theres lots more places to invest than at your local bank. I have a Roth Ira through my bank. last year I got a 5.17% return. to be honest I’m not sure if thats good or whether I could of gotten better.. I do know that saving money and making “something” is better than spending and not making anything, since I’m looking to the future. Like stated previously, I’m new to investing and am looking to get the most bang for my buck that i can.. I’m trying to not take the big step on my own so I’m bugging a friend to start saving also.. when I opened up my Roth, it was easier for me to do it at my local bank because I knew the person there.

So would the Scottrade Roth Ira gain earning based off of the market? or does it have a set interest rate like my bank would have?

Scottrade would be based on your choices in stocks, and for a bank IRA 5.17% return is a pretty good return.

I hate to disagree, but 5.17 doesn’t seem that good to me, unless you’ve invested it in something very safe. Lots of companies have a life cycle type of investment where your money is invested in riskier investments while you are younger, and gradually moves it to safer investments as you age.

Poser, I agree 5% is not optimum, but from a bank offer it is. I do agree with Poser in regards to looking for more of a return from this type of investment. You don’t have to go high risk to achieve 11.5 to 14% returns from equity income or growth income type stock funds you should be able to find at the Fidelity site above.

If your willing to do the reading on stock fundamentals, not the flashy get rich or new fangled invention type stocks, and self direct your IRA through Scottrade, you should be able experience 18 – 24% returns.

I have a granddaughter that will be turning 20 next month and would like to open a Roth IRA for her. Since my husband and I were self-employed we weren’t able take advantage of the instrument. Although, she has funds which she inherited for her schooling, she is working, good to school full-time, but has parked her assets in a savings account. I would like to fund her Roth with $l,000. and let her make the contributions thereafter. Trying to encourage her to save and invest.