Total IRA newbies!
My wife and I each need to open an IRA before mid April to count for tax year 2016. I need to do this to offset some income I took from an inherited IRA. But I've never opened an IRA myself before, and don't know where to start.
- This money had been in a guaranteed 3% annuity before I (perhaps unwisely) took out a $10k distribution. I'd like to try to at least attempt to match at least that return, if possible.
- We are rather risk averse people, but I'd like to change that, because at some level I realize that it's irrational. Ideally, I think, I'd like to invest most of our savings into the market instead of having it rotting as cash. This IRA might be a good first step into overcoming our fears.
- I tend to put way too much thinking into every last thing I do and need to back off that slightly. We also have a lot of other stuff on our plate this season and I'd like to make this process fairly straightforward, though I'd be willing to put whatever necessary due diligence in I should.
- It's very important I get this IRA opened on time, because otherwise I will face a sizable tax penalty (due to tax credit for ACA stuff). So how long does it take to set up an IRA for each of us?
- It's not clear to me what kind of IRA it should be: regular? Roth?
- We're both 46, no kids, no debt, some savings.
So, can you suggest any advice for how we might go about researching IRA options, picking ones, and executing this reasonably?