how to do IRA with Vanguard?

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I am about to open IRA ROTH and SEP with Vanguard as suggested by Fatwallet folks steering away from Edward Jones. So if I understand correctly, the process is to open the account with them, and then they will invest for me or I have to pick a few funds myself? Thx - 

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moneybie said:   I am about to open IRA ROTH and SEP with Vanguard as suggested by Fatwallet folks steering away from Edward Jones. So if I understand correctly, the process is to open the account with them, and then they will invest for me or I have to pick a few funds myself? Thx - 
  You have to pick the funds yourself.

If you don't know what to do, one of the easiest options is to pick a Target date fund -- just pick the fund closest to the date that you want to retire:

https://investor.vanguard.com/mutual-funds/target-retirement/#/

You won't have to pick funds until your money arrives in the account. You should be able to create the account first, then depending on EJ and possibly how the account is titled, Vanguard may be able to do the transfer for you. I've had a little extra paperwork and hassle when accountholder names did not match exactly - like "Money B. Ie" vs "Money Ie" or "Money Beauregard Ie". If you're moving a single account, it's easiest to make sure those match exactly from the start. But some aspects of how much they can do at your request may depend on EJ, and that's not one I've dealt with.

1) Open an account and talk to them about rolling the money over. They will provide you with forms and talk you through the process. Should take a few days and then you will have a comparable vanguard account setup (ROTH IRA or whatever).
2) The money will be sitting unused in your new vanguard account- now you need to buy something. As recommended above, I'd just buy a vanguard Target fund (such as https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=1691 The basic idea is get the fund closest to your retirement date. So the 'VTTSX' fund is a vanguard Target 2060 fund meant to used by people who will be retiring in the year 2060. What the vanguard funds do- the further out from retirement they are more aggressive (more stock and fewer bonds). As you get closer to retirement, you stay inside the same fund but they slower move you over into more bonds and less stocks (this is to protect your assets as you near retirment). So for example right now the 2060 funds have 90% stocks and 10% bonds. Stocks are riskier with more reward and bonds are more stable but less growth. The 2030 fund has 70% stocks and 30% bonds- so less risk. You can do this manually and it's not that hard- but the vanguard funds do it automatically for you- and there fee is 0.16%- MUCH better than those other idiots.



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