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Hello,
This year I'm working hard to get the best of my savings and so far i've done a few things:
Saving Account on Credit Union with balance of $4,000.00 in savings and $800 .00 in shares
Roth IRA of 1,000 with my local bank
Saving Account of $50.00 with my local bank
I currently have $1,200.00 that I'm still thinking how to make them grow in the most effective way. There is no rush to make a decision right now but I would like to know suggestions on what would be the right path.
Thanks!
@jorgevazquez87 wrote:Hello,
This year I'm working hard to get the best of my savings and so far i've done a few things:
Saving Account on Credit Union with balance of $4,000.00 in savings and $800 .00 in shares
Roth IRA of 1,000 with my local bank
Saving Account of $50.00 with my local bank
I currently have $1,200.00 that I'm still thinking how to make them grow in the most effective way. There is no rush to make a decision right now but I would like to know suggestions on what would be the right path.
Thanks!
If you can maxing out your ira 5500 an year would be an good start. I would open an IRA at one of the bigger brokerage houses either schwab , vanguard or fidelity is fine. You can start off with an TR fund or index fund. Just let it grow over time.
The only thing i would caution is if you need that money in short term, if thats the case then probably high yield savings account or CD may be an better option. If not and this money is for retirement or something 10-15 years down the road i think IRA is an good way t go.
@jorgevazquez87 wrote:
Thanks for the fast reply.
I don't need the money short-term so I will go with Fidelity, and yes, the money is for retirement.
Do I have to wait to have 5500 to open the IRA with Fidelity or I can open it with 1200 and make transfers from my local bank branch to Fidelity?
You can initially contribute as little as the mutual fund or etf costs, so for an example with fidelity. Their total market fund is FSTMX that has min of 2500 you need to open it up. You also have the option of using ITOT its an ishares stock market fund. Since etf you buy in complete shares what ever the sahre price is where you can start. As of today its about 96 dollars.
I don't have any accounts with fidelity so i don't know if they automatically upgrade fstmx to fstvx when you reach 10,000 dollars in that account i would call fidelity and ask about that.
Excellent.
Thansk for the advice!
I contributed to a Fidelity S&P index fund and when it hit ~10k they automatically converted me to 'Advantage Class'
Thanks for that.
I'm trying to look into the account you use to invest, is this one?
Investing and trading
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