ASK KIM
Don't Wait to Start Roth
by Kimberly Lankford

I've set aside cash to fund my Roth IRA in 2005. Should I invest it all now, or would I be better off investing a percentage every month? Or should I try to time the market and buy on down days or weeks?

The stock market goes up more than it goes down, so the odds favor investing your money as soon as you can. And the sooner your money is in the Roth, the sooner the earnings get the benefit of the tax shelter.

Forget trying to time the market. If the market soars, you may be tempted to wait too long for it to come back down.

For some ideas about where to invest your Roth IRA money, see the Kiplinger's sample portfolio that matches your timeframe -- whether you have more than ten years before retirement or if you plan to stop working very soon.

Retirement saving won't trim social security benefits

My wife is a school teacher who contributes to a 403(b) plan that is matched by the school district. The teachers at her school are convinced that any money they have contributed to the 403(b) will reduce their social security benefits. Is this true?

No. Contributions to 403(b)s, 401(k)s and IRAs have no effect on social security benefits, says Mark Lassiter, a spokesman for the Social Security Administration.

But her social security benefits could be reduced for a different reason. If she is eligible for a pension from a job that isn't part of the social security system (and didn't pay social security taxes on that income) -- which is the case for teachers at some local school systems -- then any social security benefits she earned through another job could be reduced because of the Windfall Elimination Provision. For more information about this complicated rule, see the Social Security Administration's Web site.