sorry, im not 50 years old yet... itll still be $4000 until 2008.

since most of you are saying i can expect to beat 4% in mutual funds, then it makes sense for me to just max out my Roth contribution anyway. and making contributions each paycheck, dollar cost averaging should be in my favor anyway. it wont make a difference in a savings account.

 

get a vanguard or T Rowe Price account and invest in some equity stocks. Unless all hell busts loose, you should easily outpace 4%

otherwise leave it in ING. That is where I put my savings for now, till I amass enough to really invest in stocks and bonds. I also have a rollover IRA in vanguard, 100% in equity funds...

bottom line, find an advisor. every person on here will have a different opinion.

 

so i just opened and deposited the $4000 in my roth ira scottrade account. im comfortable with this.

however, i did just realize something, if my goal is to maximize my contributions every year, then whatever contributions i take out even tho its penalty free, i cant really put back in since contributions are limited... sometihng i had always known but not really thought about when comparing it to something like an ING account i guess.