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Mrs. Micah is now officially an investor

bull_mvhargan.jpgIt’s not much, but I now have $1000 in a Roth IRA with ING. I chose a no-load fund based on the Large Cap index (S&P 500).

I read the Prospectus and it seemed pretty good. They do attempt to alter the S&P 500 a bit to make it even better…I’m not sure how I like that, but I’ll only be in it for a year or maybe two. My goal is to move it to Vanguard once I have enough and am less worried about potentially having to extract it.

One advantage of Roth IRAs is that I can withdraw my investment with no penalties (not what it earns, though). The ING account also has a minimum $250, so I could also withdraw $750 without even having to close it. It’s not in the plan to close it or withdraw, but it’s good to have the ability as a contingency plan.

And my investment still counts as part of the 2007 tax year. If you haven’t yet met your maximum possible contributions for 2007, you can still do it until April 15th.

Next we’ll start one for Micah–perhaps once he starts working full-time. He’s also the beneficiary of my account in case I die or something. ING actually makes you name a beneficiary, which is really handy.

photo by mvhargan

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Laura January 18, 2008 at 2:41 pm

Congrats. I have a Roth IRA with ING as well! slowly and surely I hope to build it up and move it to Vanguard too. I’m hoping to increase my contributions this year, but right now I’m focusing on getting rid of my car debt. It’s at 13.75%!

JSB January 18, 2008 at 2:59 pm

Congratulations on becoming an investor. I, too, plan on opening a Roth IRA this year. Is there a specific reason you want to switch to Vanguard in a year? Do they have a better choice of funds?

mrsmicah January 18, 2008 at 3:09 pm

Spot-on, JSB. Vanguard originated the index fund for us everyday folks and I think they have an excellent selection.

moneymonk January 18, 2008 at 3:16 pm

Index funds are the best ! Mrs.Micah is in effect

plonkee January 18, 2008 at 3:46 pm

Excellent news – the first step to living a life of luxury funded by the hard work of the minions.

Hilda January 18, 2008 at 4:19 pm

Good job, Mrs. Micah!

PT from Prime Time Money January 18, 2008 at 4:35 pm

Great job on making this happen. Good timing too. Would you say your pf blogging inspired you to make this investment?

I like your choice on the S&P500 index. I have $75 in that index as a result of my ebates/sharebuilder freebie. And I applaud your choice on the Roth since you’re young.

Frugal Babe January 18, 2008 at 9:10 pm

Congratulations!! Just think what that $1000 will be worth in 30 years…

Amanda @ Me vs Debt January 18, 2008 at 9:25 pm

Hey, I didn’t know ING offered IRAs. I’m definitely going to look into that because I love their online banking. Plus with a minimum of $250 there is no need to wait. Good call, Mrs. Micah. Debt can be paid off indefinitely, time to invest in the 2007 IRA is running out quickly.

Emily January 18, 2008 at 11:02 pm

congratulations on becoming an investor. I hope you enjoy the ride! 🙂

Andrew Stevens January 18, 2008 at 11:35 pm

A very good choice. I always tell people that it’s smart to invest in a Roth, even if you have to drain your emergency fund to do it since the Roth can act as an emergency fund. If you end up having to tap it for an emergency, you are probably in no worse shape than if you hadn’t invested in the Roth at all. (The one exception is if an emergency happens and the account has lost money, forcing you to sell on a downturn, but that would be very unlucky, assuming that emergencies don’t happen to you all that often.)

The other plus (not useful to the very disciplined) is that using a Roth as an emergency fund forces you to consider just how much of an “emergency” it really is before you tap it. Chances are you’ll consider many more options before pulling it out than you would if it were just in a savings account. Too many people who have the discipline to save an emergency fund do not have the discipline to avoid tapping it for every little thing rather than tightening their belts when a tough situation comes up.

None of this is an endorsement of using a Roth as an emergency fund. Ideally, you should max your contributions to a Roth and have an emergency fund. But if it’s April 15th and the only money you have to contribute to your Roth is your emergency fund, I think you should go ahead and do it (and be prepared to scrimp and save so that you’ve got plenty next April 15th).

vh January 19, 2008 at 12:50 am

Good time to buy: just as the roller-coaster’s headed down.

The Roth has so many advantages over the regular IRA, not the least of which is that your heirs don’t get soaked when it passes to them. Good choice!

Ryan S. January 19, 2008 at 3:47 am

Well, all right, Mrs. Micah! I’m very proud of you. I haven’t looked into ING’s IRA offerings (I’m quite happy with but a no load index fund is certainly the way to go.


fathersez January 19, 2008 at 3:59 am


May your first investment grow to be a mighty oak to give you shelter in times of need.

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