Vanguard is a great place to start. Low costs and fees. Great website and annual reports. I wouldn't get fancy and start picking individual stocks unless you have the time and discipline to do some reading first about stock investing.
I started with Vanguard in 1993 or so have done fine with them. Switched to Ameritrade in 2000 or so. Just in time to take huge losses, but have since recovered and am back on track.
www.vanguard.com should be a good place to start. Or go directly to their IRA section
http://flagship4.vanguard.com/web/co...sRetIRAOV.html
Actually I think you can contribute $3,000 in 2004 and $4,000 in 2005????
Remember to check the income limits as someone below noted. If you make less than a certain ceiling (95,000 modified adjusted gross income), I think you can open one. Above that ceiling your ability to contribute is gradually phased out.
Definitely don't do option trading if you have no experience. Option trading is complex for two reasons. First, you really have to understand the underlying stock and its fundamantals and have a good idea about its long, medium, or short term performance.
Then you have to have some math sense to follow the options calculations. Most people really shouldn't bother with options.
Contribution eligibility rules
Your maximum annual contribution depends on the tax year, your filing status, and your modified adjusted gross income (MAGI). Your ability to contribute is phased out gradually.
Single filer. You may contribute the maximum if your MAGI is $95,000 or less for the tax year in which you contribute. If your MAGI is between $95,001 and $110,000, your ability to contribute is phased out gradually; however, you may contribute to a traditional IRA.
Joint filers. You may contribute the maximum per person if your combined MAGI is $150,000 or less for the tax year in which you contribute. If your combined MAGI is between $150,001 and $160,000, your ability to contribute is phased out gradually; however, you may contribute to a traditional IRA.
Select your tax-filing status to view a chart showing Roth IRA phase-out ranges for tax years 2003–2004.
Married filing jointly
Single, head of household, or qualified widow(er)
Married filing separately
The maximum annual contributions are increased for 2005 through 2008 and then are indexed for inflation thereafter.