What is a ROTH IRA? and how do i open one?

A ROTH IRA is an individual retirement account. You can purchase induvidual stocks, mutual funds or securities within the IRA.

Most people choose to invest with mutual funds inside the IRA. Mutual funds are funds with multiple other funds within them that invest in individual stocks themselves.

Depending on your age, you can put either $4000 or $5000 into your IRA for 2007.

Some IRAs have minimum deposits. Most are at about $3000, however they're are a few with less.

Here is a link that describes the ROTH IRA in more detail...

http://en.wikipedia.org/wiki/Roth_ira

And here is a link that describes a mutual fund...

http://en.wikipedia.org/wiki/Mutual_funds

Vanguard is a reputable company to open a ROTH IRA with.

Take a look at their site.

https://flagship.vanguard.com/VGApp/hnw/planninged...

Hope this helps.

both answers are correct -- every one likes to think big dollars and Cd's stocks and stuff.. i help my 15 year old niece open her roth ira when she was 14 and at the local bank and she only had a earnings of $28.00 (you can not put in more than you have earned income with a max - single person 4000) . now she puts a little in each month 20 or 40 depends on the amount of hours she works. this bank pays roth ira 5% which i realize is not great but until she gets the necessary xxx dollars to buy into some funds or stock it is a great way for kids or adults that do not have a lot to to add to their retirement.

yes you can lose money in a ira -- any time you put month in to stocks or you have the risk. that is why your spead you monies in roth ira over several difference areas of inverting.

You don't have to invest in securities/stocks/funds, etc. Go to any bank (preferably the one advertising the highest interest rate) and tell them you want to open a Roth CD (Certificate of Deposit). Go to IRS.gov to find out what contribution amount you are allowed AND if your income qualifies you to open a Roth or if you are restricted to contributing to a traditional IRA.(There is a limit to how much annual income you can have in order to qualify for a Roth).

most mutual fund companies want you to have a 1000 minimum...vanguard and fidelity.. also, you can only put in 4000 per year...so far..money grows tax free when you withdraw at 59

try http://www.sharebuilder.com/ they will explain everything and you can open one for free there.