Insider's Investment Guide

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Firstly I would like to say that I don’t know much about investing. I need to find a company that will give me advice and will guide me in the right direction. Secondly, I would like to put in $50-$100 a month and I don’t have any money saved up to pay to open an account. I’m also looking for no fees. Got any ideas?
I make $4,500 a year, I live in california and I live with my parents. My bills are $170 a month. I want to open a Roth because I want to be finacially secure when I’m older.

answer…however this user does not allow e-mail. Soooo…in case Serge is out there or in case someone elsse might know I’d appreciate it. My question was re: my Roth IRA losing $200 in the last 6 mos due to the lousy economy and Serge said not only to keep it in (to avoid early withdrawal penalties) but to actually ADD to it every year. My question now is “Can you explain that?” I fear putting more money into an account that is declining now and wanted to wait until times got better economy wise before I added to it – but again, I know so very little about the stock markets. I could use an education about the basics as to why i should add more rather than put it in an interest baring (3.5%) account now. Is there a link even that might explain that? Thanks in advance to any and all who can guide me.

When it comes to retirement planning, saving for retirement is more important than ever, this day and age. Inflation and the uncertainty of Social Security income point towards the seriousness of our economic situation. The only way we can have a certain comfortable retirement is to take these matters into our own hands, rather than relying on what worked for others in the past. One of the most obvious ways to do this is to invest in a retirement plan, like an individual retirement account, IRA, or 401k retirement plan. After contributing to these plans over the years there will come a time when we are required to make withdrawals, this is called Required Minimum Distribution, or RMD.

Once reaching a particular age (currently age 70 ½) Required Minimum Distribution is mandatory according to the Internal Revenue Service (IRS). These mandatory withdrawals are required each year and every year, allowing the IRS to collect taxes from the distributions of retirement accounts. These are made mandatory by the government, because contributions either to a 401k or an IRA were made with before tax dollars. Initially, you’re encouraged to save for retirement with an IRA or 401k deduction with the assumption that taxes are deferred until Required Minimum Distribution. This may not sound like the best deal in the world, but the benefits from tax-deferred growth are substantial over time. The only real way to avoid Required Minimum Distribution would be to set up an initial investment and Roth 401k or Roth IRA.

Now, when you begin your initial investment in either an Individual Retirement Account or a 401k, you can’t just submit a substantial amount of money and defer it from tax. If this were the case, it would be too easy to put large amounts of money away and avoid having to pay taxes. So, the government puts limits on the amount of money we can put away in our retirement plans. 401k limits and IRA limits increase with each and every year, as the cost of living rises. If you’re fortunate enough to have a 401(k) available to you at your workplace, you should definitely take advantage of it. Not only will you likely receive a match from your employer, but 401k limits are often substantially larger their IRA counterparts. Currently (for 2008), IRA contribution limits are a maximum of $6,000 inclusive of the 50 and older catch-up provision. Where as, current 401k limits are set at $20,500, inclusive of the 50 and older catch-up. If you are below 50 for either, the amount is $5,000 for the IRA account and $15,500 for the 401k retirement plan. This may not sound fair to those that don’t have access to a 401k retirement plan, but it should provide more urgency for those whom are left out.

401k or IRA withdrawals are not just taken via required minimum distribution, however. You can take a qualified plan withdrawals at age 59 1/2, and the funds will be taxed at that time. Qualified accounts taken before 59 1/2 will be subject to early penalty in taxes. As far as the required minimum distribution amount, at age 70 1/2 this currently works out to be about 3.65%, based on life expectancy tables. As you age, this percentage increases, so at age 90 for example, the percentage is currently 8.77%. For obvious reasons, the government wants to get the taxes out of you before you die. Make sure to work with a qualified financial planner. When determining your specific required minimum distribution or 401k is limit, as these both involve very important tax and retirement planning issues.

www.businessloan365.info Blaise Dietz describes the basics when it comes to tapping your 401k and IRA without incurring and tax penalties. Blaise Dietz also shows how anyone can borrow up to 95% of the value of their securities portfolio. Securities loans are usually done on margin with a loan to value of 50% and they’re really expensive. *I am not a licensed tax or securities adviser.

I’m reading Robert Kiyosaki’s book “Rich Dad Poor Dad” and he often emphasizes the importance of fiancial education as a stepping stone to achieving financial independence.

Is self-educating oneself outside of school by reading up about investing sufficient to have a chance at investing successfully? Or does one have to get a university education in finance and work in the field of finance to be a successful investor?

I just need a quick rundown on them. Any info is greatly appreciated. Thanks.
Also, any recommendations in which one to invest in would help also.

I was sitting at a table in my favorite restaurant, having lunch with Sue, a friend of my daughters. Sue knew vaguely what I did for a living, ie that I advocate socially conscious real estate investing, through the use of retirement vehicles such as 401Ks, self directed IRA and other retirement assets. But apart from the fact that she saw me sitting at the computer typing every time she came around, she really didn’t know very much about what I did at all. I decided to try and educate her.

When somebody decides to join City Capitols program, the first step is to convert their IRA into a self directed IRA. The next step is to establish a LLC. All this is quite simple really, and City Capitol assists through out the entire process. The LLC then hires City Capitol to do all the work. Homes and properties are bought, restored and remodeled, and then sold again for profits which flow into the clients IRA. There is nothing the client needs to do at this point except to watch the profits come in, get invested and reinvested into their self directed IRA. The client has complete control at all times. At any time the client can stop any activity, as he or she has complete control of their LLC. That is a pretty simplified version of what happens.

City Capitol does not guarantee how much money you will make. But they do guarantee that you will earn at least double whatever your last 12 months ROI in traditional investment vehicles such as stocks and bonds, mutual funds etc. If you don’t experience double returns from the community investments we are involved in, we will pay it ourselves. There that’s straight from the corporation.

You will have noticed that I tend to point most of my articles at the retirement sector, that is because 401Ks and IRAs traditionally have money just sitting in their respective accounts making profits for the banks and brokerage houses. However there are some people out there who have cash to invest today, and they don’t mind paying taxes now. They don’t want to sock money away for their retirement, they want to make money they can use now. These people can invest with City Capitol now, they just have to pay the appropriate taxes.

I don’t know whether I educated Sue or not, but I tried, and I enjoyed it. And we had a nice lunch. As ever, please check out this investment information, you will be very happy you did. Also if you have a minute or two to spare, please feel free to check out my website.