The Skinny on Roth IRAs

Jeff at Good Financial Cents is hosting the Roth IRA movement.  This article is a part of that movement to educate people about the importance of saving for retirement.

Why Save for Retirement, I Have Time?

Time is your best friend when it comes to saving for retirement.  Stat early, and you won’t have to save as much to see your savings catch momentum.  That’s because compounding interest, the 8th wonder of the world, thrusts your small savings into a much larger amount with every year that it’s invested.

Even if you can only save $25 a month towards retirement at age 25, DO IT.  You’ll start a healthy habit that you can build off of in the years to come.

But I Don’t Know How to Open a Roth IRA?

If you have 25 minutes, and know your address, phone number, and social security number, you can open an IRA at any major brokerage in no time.  Most Roth IRA forms are about two pages and most of that information is your general information, so it’ll be a snap.

How Should I Be Invested?

That’s a great question to ask the brokerage firm – that’s why they are there…to help you!  Look for index mutual funds that have low fees and don’t try to ‘day-trade’ your account.  Slow and steady wins the race here.

That’s Too Easy…Anything Else I Should Know?

Yes, and this video does a great job in explaining the details of a ROTH IRA.

 

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