Consider an index fund which allows you to control many stocks instead of just one. For example the S&P 500. Which is more likely to go to zero or near zero, an individual stock or the entire S&P 500? Obviously the individual stock is more likely.
Also consider reading the Stock Trader's almanac. It provides a bunch of statistical information from over 50 years worth of data.
For example, in the 2009 Almanac they mention how high your returns would be just by trading the MACD indicator during certain months of the year. I can't remember what it was but it was considerably higher than the average annual stock market yield of 10%.
Another example of the almanac is the January effect, aka the January barometer.
Definitely convert from a traditional IRA to a ROTH. If you pay 15% in taxes, you will most likely make that back in 1 year. All of the earnings on that money are TAX FREE. Check with IRS to find out if there is a maximum you can convert in a calendar year.
Look at it this way. You give Uncle Sam $3,000 in taxes now. Then Uncle Sam will give you $3,000 a year (probably more) for the next 35 years and when you take it out after age 59.1/2, you will not pay any taxes on it.
I wouldn't convert it, you can't predict future taxes. We are 18 trillion in debt, thats going to be an impact at sometime even though people like to think they can just ignore it. The gov could at anytime just say roth IRAs will not be tax deductible. A new IRA I would make roth, but converting means paying taxes on difference also, just use roth for new IRAs so you dont have to deal with that other stuff
A Roth IRA will allow you to avoid paying taxes at the end, but the price of that is that you'll have to pay taxes up front, ie. use after-tax money. If you convert a Traditional IRA to a Roth, you will have to pay tax on it now. Don't listen to people who just tell you "convert" or "don't convert"; ask why or why not. Then do your own homework. There are online calculators that show you graphically how your investment would change over time if you leave it in a Traditional IRA, and how if you convert it to a Roth IRA. There are also books on the subject.
Paul - - you need to get some good financial advice so that you can make peace with your TDF. You are (from your previous questions over the past year) completely confused about how to invest.
If you know anything at all about investing, then you know that buying individual stocks is about the most risky way to invest. It's a fool's game.
Get your retirement savings on autopilot (auto deposits and auto investments into your TDF) and stop looking at them every day. You're obsessing.
I think conversion to a Roth is a good idea given your young age. You can spread that conversion over a couple of years to lessen the tax impact. Opening a brokerage account is OK if you have "spare cash" but don't overdo it there - it's much riskier than a good mutual fund.
Sign on with Charles Schwab. My portfolio is worth over one million dollars.
Convert the IRA to a Roth.
There are some good stock screening tools on different sites. Vanguard's is at https://personal.vanguard.com/us/whatweo...
I use Fidelity, which also has good screening tools and lots of already-built stock screens.
Hope that helps.
I'm 25 years old and save $500 a month to my target Retirement account 2045 with Vanguard. Also have an Traditional IRA with Vanguard. The 2045 has $15,000. The IRA has $3,500 I was wondering should I convert the IRA to a Roth IRA instead to avoid taxes when taken out when I retire?
Also I have extra cash $5,000 thinking to buy FB stock, Walmart, and Apple let me know what you guys think? And which website would be best for this.
Certainly want $1,000,000 when I retire.
