Wondering now if I should open a SEP - IRA? Thoughts?

[jerseyguy]

Have just been advised by a "finanacial planner" that I should go for a SEP - IRA. I am trying to make up for lost time since I havent put money away to an IRA and am now 44 years old. He says this will allow me to put more money away than the $4000 in a ROTH or traditional IRA. Since I really don't trust these guys much, wondering what you thought of SEP's. Thanks.

[jerseyguy]

Forgot to mention..yes I am self employed.

[sweeps]

Do you have employees?

[jerseyguy]

No employees

[sweeps]

Ok, yes, you should open a SEP-IRA. Fees are low and the contribution limits are high. If you open it before April 17th, you can deduct the contributions from your 2005 taxes.

[jerseyguy]

Sweeps...thanks for the vote of confidence. Might you have a particular company I should check out. Again...so new to this but I am a research hound and want to come out of gate strong. Would this Fidelity, Vanguard, T Rowe Price...etc's. Thanks

[Ima saver]

I like Vanguard because their expenses are so low. I have my husband's sep-ira in Vanguard Index 500.

[sweeps]

All the usual suspects offer them. You'll probably see from other posts that I prefer Vanguard, but Fidelity and TD Waterhouse are fine too. (I have no experience with T.Rowe Price.) If you're more of a Type A investor and plan to do a lot of trading, you might want to consider Scottrade for lower commissions.