I just opened a Roth IRA with Fidelity. I have had a 401k for the past 3 years which I have been funding at 6% of my income. I get a match of 1/2 at 6% max. I've been taking the free money but I want to contribute more. I'd like to increase my contribution to 10-11% but I would like the first 5500 to go into a roth IRA. If I start puting 100 dollars a week into my roth can i start investing it right away or should I wait till I have 2500 in there to buy into my target mutual fund? I'm trying to find a way that I can contribute 100 dollars a week and have it start working for me with as low of fees as possible. I also have a savings account that I am getting a 3.25 APY on, if I should wait till I have a large enough chunck of change to buy mutual funds stocks and bonds then I think I'll just keep the money in my savings until I have 5500 to put into my account for 2015.
Any recommendations are helpful. I'm just wondering what can be done with a Roth IRA so I can keep trickling money in weekly.
My plan is to keep putting the 100 dollars a week into my High yield checking account. Sorry It was not a high intrest savings I meant a high intrests checking account. I get 3.25% on balances up to 10,000. You can check it out if you live in minnesota, South Dakota, Iowa or Nebraska. Iowastatebank.net
The account is a Kasasa account. As long as I have direct deposit and use my debit card 10 times in a month I get the interest rate. Two things I do anyways so it's a win win.
I currently have my 5k emergency fund in the bank then I have an additional 1 to 5k in the bank that revolves and I use to pay my mortgage, bills and credit cards with. I'm at a point now in a month that I will no longer have any debt other then a mortgage at 3.9% and a student loan at 2.9%. It makes sense to just keep at least 10k in the bank and then contribute anything else to my 401k and roth IRA. I don't see a need to have more than 10k in the account??? I am going to be opening one for my girlfriend as they only let you have one account per SSN. I'll move another 10k from my oversea investment to that account and then let it earn interest. I'm hoping to sell my condo and build a bigger house.
Since I want to contribute no more than $100 a week to my roth, should I just keep that money in the bank until I have a large enough chunck to buy some diversified S&P 500 index? The last thing I want to do is pay a fee for every 100% weekly deposit. Is there anything I can do for free with my money in a roth IRA though fidelity so I can earn some intrest? I put 100 in there when I opened it. I was going to put 200 in this week for the next two weeks but if having 300 in the roth with no options unless I pay a 7.99 fee to buy index stocks, I think I'll just keep it depleted until I have the full 5500 to put into it some time in early 2016.
Am I missing something here? I was hoping there was a way to just send money directly every week into my allocated investment plan like I do with my 401k? My money goes in directly and it is invested in the funds of my choice for no fee.
Please let me know if there is any other options with a Roth IRA so i can start seeing a return with minimal fees.
If you are just interested in buying a s&p 500 or total market fund. An option is to buy etf there are ivv and itot. There are no charges to buy those etfs. You just have to enough to buy one share. So you can contribute ever week.
The other option is to wait till you have 2500 to buy fidelity funds. If i were to choose i would do second option and buy mutual fund, so you can just contribute 100-200 dollars an week and you won't have to worry about how much the share price of the particular etf is
