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IRA's

September 11th, 2008 at 07:02 pm

Ok, so I've mentioned in a couple posts that I have IRA's and that I will expand on them later. Well, it is later. I have 2 IRA's, both Roth. One is with T-Rowe Price. It is a mutual fund and I contribute $50/month towards it. I opened it November 30 of last year with $2000. I plan on keeping this up until they switch Portfolio Managers, then I may be shopping around.
My other IRA I just opened. I took the proceeds from a failed stock trade (failed as in I lost money) and decided to put it into a self directed IRA. The premise for this IRA is simple, buy solid companies, with a history of raising dividends. The plan is to never sell the shares, but to reinvest the dividends in order to build up positions.
I realize that this strategy is a little conservative, especially for my age and time horizon, but it is a strategy that I can keep up with. I have realized I don't have the patients to research and do homework every week or month per position. With this strategy, I can buy and hold, the only time to sell is when the company can no longer raise the dividend, or cuts the dividend.
I also have 2 different retirement accounts from work (which I am no longer allowed to contribute to based on my position at work). One is in a general money market account (it's only $50). The other is through AIG. It has about 1300 in it. I can't remember where it is allocated, and I can't remember the username/. Oh well. I will figure it out. I have contacted them about switching to my IRA with T-Rowe, but they said because I am employed still, I cannot move it to an IRA.
I think that is about all I have to say.

3 Responses to “IRA's”

  1. debtfreeme Says:

    i don't understand having two ira's.

    The total amount you can put into the total of all ira's each year is $4,500. WHy not put it all in one and get the most interest possible?

  2. djudah Says:

    I don't have an extra 4500 a year to put forward, I'm a part time working student. So there is that. (sounds a bit rude, but it's not meant to be rude.) I see where you are coming from. I have two for this reason, the one with t-rowe price can take care of the capital gains and picking stocks and selling them, I don't want that headache right now. The one with T-rowe is more of a "real" IRA, if you want to think about it that way, and the other is more of a training. However, the more confident I get in picking good dividend players, I may well move the T-rowe over.
    I know I have an extra 50 per month, however, since my income isn't as consistant as it could be, for right now I am going to stick to this plan.
    Any thoughts as to subscribing to a service that helps with picking good dividend payers, such as from Fool or Morningstar?

  3. jIM_Ohio Says:

    Max for IRAs is 5k per year. The dividend strategy is similar to the one I use (I use a mutual fund which buys dividend paying companies for 45% of my IRA monies).

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