Roth IRA

[JoshNurse]

Which Roth IRA's gain 7-9% annually?  Or do I need to invest the money by myself in my Roth IRA in order to gain 7-9%+ yearly?

I want to open my roth ira but have trouble understanding how it gains and what I need to to on my part.

[compassion101]

There is no investment that gains 7-9% annually without risk. If you put all your money into the stock market and keep the fees low you may do 7-9% annually over the long term, but with high yearly fluctuations.

Usually you open up a roth IRA with a broker (tdameritrade, sharebuilder, etc). Then you decide what to invest in. Like buy stocks or bonds, or Real estate investment trusts (REITs). There are also alternative investments like I believe lending club allows yuou to oppen a Roth with them. Think of it this way, roth money doesnt go anywhere different than regular IRA money or taxable accounts, it is just designated as a different status for tax purposes.

[SamsungHDTV]

Roth is just an umbrella account. You choose funds to put inside your ROTH. Just like 401k is another umbrella account, you pick which funds inside the 401k. Same with a traditional IRA. ROTH IRA, traditional IRA, 401k, brokerage, these are all umbrella accounts that you can choose which funds to put inside.

So you're question should be which funds can I choose to put inside my ROTH that earns 7-9%. While there is no guarantee like the previous poster mentioned. There are funds out there that have averaged these returns in the past 10 years. 

I suggest you talk to a financial advisor at your bank.