How We Set up Our Individual Retirement Brokerage Account

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1 - How To Set up Your Individual Retirement Brokerage Account

The TimingTruth IRA Retirement Strategy is for individuals who already have an IRA, need to roll-over a 401k plan, or want to save beyond their 401k plan. It uses multiple Exchange Traded Funds (ETF) while seeking to keep management costs to a minimum. As all TimingTruth strategies it strives to take advantage of strong economic cycles while avoiding weaker periods by monitoring long-term economic trends. If you have some experience with investing concepts and practices this strategy might be for you.

Our IRA retirement strategy is different from the EASY retirement strategy because it uses Vanguard's brokerage account and not a mutual fund account. A brokerage account is more flexible but not as easy to setup. You need a brokerage account to trade ETFs.

First, you need an on-line brokerage account.

We recommend Vanguard.com as the most cost effective. If you want to explore other on-line brokerages please read "How to Select an On-line Brokerage Firm"
Each on-line brokerage has a slightly different process for creating a new account so we can't give you exact instructions for every brokerage firm. We will instruct you in general terms what choices you should make. We will make the assumption that you are creating a personal retirement account (not a trust or business account).
Because you are opening a financial account you will be asked to supply a lot of information not normally required to open an on-line account. This information is required by the government among others.
You will also be asked to "agree" and "acknowledge" a number of statements, policies, agreements, and so forth. These are usually many pages of legalese. If you have any hesitation consult your lawyer or legal/financial advisor. Because brokerage firms are regulated by the government most of these documents are common to all brokerage firms.
Because you need to supply a lot of personal information and agree to a lot of legal documents we strongly encourage you only to sign up with on-line brokerages that are members of FINRA and SIPC.

Next you create the correct type of investment account.

Be sure to open the correct type of account - IRA or Regular.
These two types of accounts are different in how they are taxed.

Income or profit from an IRA has special tax treatments.
Income or profit from a regular account will be treated as regular income.

If you are rolling over a 401k you must move it into an IRA account.

Another question you will probably be asked is do you want to set up a "Margin" account along with your investment account.

Most investors will answer "No"
Answering "No" greatly simplifies setting up your account and will never be needed by investors who follow TimingTruth strategies.
If you need and want to open a Margin account in the future it is relatively easy to do.

If you are asked if you want to trade these answer "No":

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