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

jerseyguy · #1 (**permalink**) 02-10-2006, 09:57 AM

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 · #2 (**permalink**) 02-10-2006, 10:04 AM

Forgot to mention..yes I am self employed.

sweeps · #3 (**permalink**) 02-10-2006, 10:09 AM

Do you have employees?

jerseyguy · #4 (**permalink**) 02-10-2006, 10:56 AM

No employees

sweeps · #5 (**permalink**) 02-10-2006, 11:05 AM

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 · #6 (**permalink**) 02-10-2006, 01:22 PM

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 · #7 (**permalink**) 02-10-2006, 01:32 PM

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

sweeps · #8 (**permalink**) 02-10-2006, 01:35 PM

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.