I could only put $4,000 in my roth account this year right? What if I I want to invest more money?

Ok, I am new to this and I want to get my facts straight before I make a move. I want to reach to a million dollars by the age of 65 and I am currently 23. So, I should open up a Roth IRA account and I could only put in $4,000 in it this year right? So if I want to invest more money...I should open up an account with some broker or online site and invest in stocks, bonds...etc which makes my portfolio right? So does that mean portfolio and IRAs are 2 different things? Please help.

It is relatively simple to open an investment account at either Fidelity or E- trade, or any online company. And I really don't see the need for an " investment advisor" at this stage. You can read about the investments open to you at any financial site...look at finance/ yahoo, or Kiplinger's site, or moneycentral at msn, ....most will have a link to " beginner's investing"... it will tell you about mutual funds, ETF's and individual stocks.
When you choose a company to invest with, their site will most likely outline numerous different methods and stategies for investing. KEEP IT SIMPLE.
I don't know where your IRA is invested, but when you choose your investment company...roll your IRA into a " self- directed" account....and make your future contributions into it.
A little reading, researching, comparing results/returns and you will find a portfolio that you are happy with. You are in control, pick a fund or two first...then look into ETF's and individual companies.
One tip: you are young , when you get to choosing companies that you really think you're going to hold and hold... go for some dividend- paying stocks, re-invest ( same stock or different ) That money grows and grows ( there will even come a point that you have more dividend money invested than you what you put in originally..that is the epitome of having " your money work for you".

First off, let me commend you on your goal of reaching a million by 65. That is a good mindset to be in. Now to answer your question.

An Individual Retirement Account (IRA) is a retirement savings vehicle used to save up money for retirement. Being that you are 23, retirement is a LONG time away.

You are right about the $4,000 contribution. You can only contribute that NOW. In 2008, however, that number goes to $5,000.

A portfolio is simply a collection of investment vehicles (stocks, fixed income, alternative investments, etc). Your IRA account will have a porfolio (a collection of investments) of your choosing - mostly mutual funds and/or fixed income vehicles.

From what you are saying it seems like you want to invest more then you want to save. For that reasons, in my opinion, it would be wiser for you to open up an investment account with a financial advisor. Because I do not know your complete situation besides your age I really cannot tell you anything else.

Your best bet would be to contact a financial advisor in your area and see what he/she suggests you do.

Hope that helped!

Hi,

Yes, open an online trading account as well as establish a working relation with a reputed broker. You can visit http://stocksguide.checkouttoday.info for some useful tips and info for doing so. Good luck!

You're right about the $4,000 limit on Roth accounts for 2007.

As for additional savings, you have a wide array of options given your age. But consider your needs and goals before opening other accounts.

First, think about having an emergency cash fund holding three to six months living expenses. This should be in a safe place like a federally insured bank or credit union account. The purpose of this fund is to give you a buffer against life's economic ups and downs.

Second, if you want to buy real estate or a car in the next few years, it would be a good idea to save money for a downpayment. This money should be invested in safe, short term investments like a money market account, or money market fund. Having a good sized downpayment will probably reduce your borrowing costs.

Third, for your long term investments, you can invest in mutual funds, ETFs, or individual stocks and bonds. It's easiest to start off with mutual funds because of their relative simplicity. Once you get the hang of mutual funds, other investments become easier to understand. Index or lifecycle funds are a good place to start. Vanguard and Fidelity are mutual fund companies that tend to have low costs for these types of funds (although the Fidelity managed funds can get expensive).