I'm looking to open an IRA or 401K account, but aren't sure which direction to go.....?

I'm 24 and have finally settled into my job and gotten my apartment bills paid up to date and have the ability to open one up. My company offers contributions to 401K accounts, but I'm not eligible until April 2008. I am not sure I plan on still being with this company at that time.

Therefore, I'm not sure which is my best investment option. I'm not able to put much in now as I'm paying off my damn student loans as well. I plan on having $75 from my biweekly paycheck deducted and put in my account.

I've heard Roth IRA's are slightly riskier and therefore offer higher rewards, so I may be inclined to go that route. However, I also want something safe, steady and more appropriate for my investment knowledge (which is quite light).

Also, does it matter which company I choose to invest with? Is there any difference in interest rates, etc between Ameriprise, Fidelity, Vanguard, etc. If so, which companies will benefit me most to choose??

THANK YOU! HAPPY HOLIDAYS

That kind of sucks that you have to wait over a year to be able to start a 401k. If I were you, I would definetly start a Roth IRA. I would invest in companies that offers a variety of mutual funds. I would check the broker fees when you invest through a company.

In Roth IRA, you can choose a variety of mutual funds. There are all types, ranging from conservative, to moderate growth, to aggressive growth. Mutual funds may invest in bonds, money market, or stocks. Interest rates are not guaranteed in mutual funds. You may lose or gain value in your portfolio.

If you want to read more about IRA, read this blog: http://obe231.blogspot.com

If you company doesn't match your contributions to the 401k then don't open a 401k.

You should always max out your ROTH IRA.

Roth IRAs are just baskets and are not riskier than 401Ks which are also just baskets. It's what's in those baskets that can make or break you. The fees you should care about are buy and sell fees (all are different depending who you choose to go with), plus maintance fees. Roth IRAs are more flexable since they are all about you and not your company. You can put more than stocks and bonds in them too. Also make sure your cash that you put in your Roth is in a money market. I put in $1,500 cash in my Roth which will cover all my fees, because my cash is generating 4.4% in interest.

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Merry Xmas , Happy NewYear !!!