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IRA

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Frequent Contributor

IRA

Hi there,

 

I currently have a job working $9.45/hr (yes I am 19 yrs old). I was just wondering if I should start either a traditional ira or a Roth ira right now or should I wait later? If so, then which one would I pick?

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5 REPLIES 5
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Established Contributor

Re: IRA

Take advantage of your low current tax rate and start a Roth IRA now. Contribute as much as you possibly can, invest wisely and for the long term, keep contributing.

You should read If You Can, how millennials can get rich slowly, by William Bernstein (only 16 pages). You can get it for cheap on Amazon or find it free as a pdf if you google. It gives great advice on how to save and invest for the long haul.

Good luck!
Message 2 of 6
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Community Leader
Super Contributor

Re: IRA

OP, your question brought joy. It’s so refreshing to see that at 19, you’re looking into IRAs. KUDOS to you for getting started early. This really is the way to do it.

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Senior Contributor

Re: IRA

I agree, if I had only known about IRA at that age! Of course when I was 19 the Roth IRA didn't exist. 

I didn't learn about any type of investing until I was about 30, and at that time I didn't have the funds to invest until much later.

 

It is nice to see young people asking baout this, rather than what CC's are best though!






Message 4 of 6
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Regular Contributor

Re: IRA

Definitely get a Roth. If you don’t have much to put in Schwab is a great option. No minimum to open and Their target date index funds Have a low fee.

 

if you have 3.5k to put in up front vanguard is the best.

 

I personally have a Schwab Roth IRA and I’m invested in the 2060 target date index fund. I’m 25 years old.

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Message 5 of 6
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Super Contributor

Re: IRA


@BabyFaceNelson wrote:

Definitely get a Roth. If you don’t have much to put in Schwab is a great option. No minimum to open and Their target date index funds Have a low fee.

 

if you have 3.5k to put in up front vanguard is the best.

 

I personally have a Schwab Roth IRA and I’m invested in the 2060 target date index fund. I’m 25 years old.


Fidelity is also another good option they have their freedom index TR funds with very low expense ratios, i think in the .12% range. I use them for my ira the no min balance or contribution is what got me started with them as opposed to vanguard. Correct me if i am wrong with vanguard their target retirement funds are min 1000 as opposed to their other mutual funds that are normally 3000 min.



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