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Old 03-02-2005, 07:34 PM
Join Date: Dec 2004
Posts: 44
Default Re: Basic Questions About Retirement Investing

1. If you are going to use an investment professional to help you, you'll have to pay them (translated...there will be a commission). If they provide a service, they deserve to be compensated. From the sounds of things, you probably do need some professional help at this point in time.

2. No. The 2005 combined limit for IRAs is $4,000. Go with the Roth IRA. If you are self employed, look into a SEP-IRA in addition to the Roth IRA.

3. Putnam "b" shares. B shares at Putnam have a 7 year penalty for early withdrawal. If you don't like that Putnam mutual fund, consider transferring it to a different Putnam mutual fund. But if you sell Putnam and buy a different compnay's mutual fund, you'll most likely have to pay Putnam 2%-3% penalty. If you transfer it in an "as-is" manner (you keep the money invested in Putnam mutual funds) then there will be no penalty.

4. or

5. The difference between one company's index fund and the next is negligible. I'd base my decision on service rather than cost...unless the difference in cost is grossly more in one or the other. Just dump it in. The stock market hs positive returns about 65% of the time....gotta love those odds. Sure, it could go down the day after you put it all in, but that's not too likely. Think of it like getting dealt pocket rockets and getting all your money in the pot. Sure, you could lose, but that's not likely (even though we've all seen it happen).
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