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Old 12-22-2007, 04:55 PM   #1
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can i?

can i put 125,000 cash into an ira? is there a limit

whats the dif between roth ira and ira

i have 125,000 bucks and i want to invest it somewhere and watch it grow. but i need returns of at least 10%

this is lump sum i want to start out with
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Old 12-22-2007, 06:33 PM   #2
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Quote:
Originally Posted by ddeennis View Post
can i put 125,000 cash into an ira? is there a limit

whats the dif between roth ira and ira

i have 125,000 bucks and i want to invest it somewhere and watch it grow. but i need returns of at least 10%

this is lump sum i want to start out with
Welcome to the board.

Roth IRA: Post tax but grows tax free and withdrawal of principal is allowed without penalty.
Traditional IRA: Pre tax, but grows tax deferred, with any withdrawal causing a taxable and penalty accruing event.

Traditional IRA and Roth IRA Contribution Limits

You cannot drop a flat 125k into an ira due to contribution limits. Depending on your income of course, but it is likely to be a good idea to drop 4k into a roth ira this year, and DCA the 125k into a taxable stock account (indexes at Vanguard) over the next year.

As for "at least 10%" ... the stock market is not guaranteed by the FDIC =D Some years you will break even and be lucky, some years you will lose money, some years you will gain money. The average over a "long enough period of time" seems to be 10%, but this does not imply that each year you gain 10% =D

I am so not touching the "What should I invest in" question there but look at Vanguard's indexes and pick some low cost ones that have returns and risk that is likely to be a good idea for you and your family.
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Old 12-22-2007, 06:46 PM   #3
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A little more info. in your title, please and I think your questions could be answered by a simple google search...
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Old 12-23-2007, 10:16 PM   #4
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Quote:
Originally Posted by ddeennis View Post
can i put 125,000 cash into an ira? is there a limit

whats the dif between roth ira and ira

i have 125,000 bucks and i want to invest it somewhere and watch it grow. but i need returns of at least 10%

this is lump sum i want to start out with

You can NOT put $125k in an IRA (unless it is already in a tax deferred plan like a 401k, in which case you can roll that money over into an IRA). You can only put annually into an IRA the lesser of your earned income for the year or $4000.

You will have to invest the $125k in a taxable investment account.

IF you are content to let the investment ride for a LONGTERM (10+ years), then equities "may" average out over the ten + years to get you 10% return. You simply cannot count on every year making 10%, year in and year out.
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