Retirement Planning/where to


hi..i am looking into the subject of opening a roth ira.  i can retire in about 1 yr and 8 months at age 62. so, should you open a roth ira with a bank, or a place like fidelity?  thank you!

Hi James,
A few things to know about a Roth IRA: You cannot contribute to an IRA unless you have earned income of at least the amount you contribute. So you would not be able to contribute after you retire unless you still have earned income. You cannot remove gains from the IRA until it has been in for 5 years. You would be able to withdrawal principal penalty free. You do avoid RMD's or required minimum distributions after you turn 70.5 with the IRA.

The thing to consider is what type of investment or account you want to put it into. Something guaranteed or something that has some amount of risk. I would not do investment business with a bank. Fidelity is OK but I don't think they're very helpful with advice. I would recommend you contact someone who works with a good life insurance company. They have advisors who handle investments and also annuities which could make sense depending on your situation and needs. An annuity can be a great place for a Roth in the right situation. I find the insurance based brokers to be more reputable then the brokerage houses. If you were just going to put the IRA in a savings account than I probably wouldn't even open a Roth because the tax savings would be minimal in this low interest rate environment. I hope this helps. Let me know if you have more questions, and good luck!


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David M Iannopollo


I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!


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