Roth ira investment for working eighteen year-old
My daughter who is 18 has her first job and is interested in opening a Roth Ira account. Do you have any suggestions where to invest or where to start?
Thanks,
Clueless parent
Terry Says
Good for her! I suggest she make it a “Roth” IRA, which means she does not get a deduction for her contribution, but all the money grows and comes out later tax-free.
Have her go to Fidelity.com or Vanguard.com and open a Roth IRA account. They will ask how she wants it invested. She should choose the S&P 500 Stock Index fund.
Tell her to keep investing regularly and never get scared if the market falls.
She can invest up to $6500 this year in an IRA– as long as she earns that much. But both Fidelity and Vanguard will let her open the account with a much lower amount if she signs up for automatic monthly contributions from her checking account.
PS. “Clueless” — if you’re working, you should do the same thing!!
