I’m trying to start my retirement planning (roth IRA) at an early age. I’m 23, recent college grad, newly married. I have a small amount per month that I’m able to put in but not a whole lot right now. IT seems like everwhere I look they require either a high monthly deposit or 3000-4000 start up. I’m trying to start early because I know it’s smart, but everywhere I turn is turning me down! I’m getting frustrated over the idea that I have to save up to save up! Any suggestions?
Some mutual funds will allow you to avoid the “minimum” balance if you commit to a monthly deposit. I can’t speak to all the funds that allow this, but talk with the various brokerage houses (i.e. Fidelity, Vangaurd, AIM, just to name a few)
Sure, start at your bank–they’ll open an account for you, then when you’ve accumulated the $3 – 4K, you can roll it over into a higher yielding fund.
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Some mutual funds will allow you to avoid the "minimum" balance if you commit to a monthly deposit. I can’t speak to all the funds that allow this, but talk with the various brokerage houses (i.e. Fidelity, Vangaurd, AIM, just to name a few)
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I got back a nice tax refund that I used to start my IRA. Plan for saving monthly and open one at next tax time. Whatever way you have to go, you are way ahead starting at 23. Good for you!!
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Save up in a regular bank account until you have enough to open. Then make regular automatic contributions. Check T. Rowe Price and Vanguard – they have low opening IRAs as long as you agree to automatic contributions.
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Check with TRowe price and see what the start up initial deposit is.. It was $500 when I opened the IRA…I got a money market account till I had enough to buy stock off the market. They also offer no-load mutual funds…One suggestion is to open an account at the bank and label the account as Roth Ira—Save every month till you meet the minimum deposit then transfer the money to the holder…
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First of all, congradulations. You are in the top 2% of smart people in the country who are thinking "savings" for the future. It is possible that the company you work for has some sort of IRA–. But, a Roth is a good choice because you pay the taxes up front. So, you could put whatever money you do have into a long-term (6 month or more) CD account while you are getting up to the 3,000 investment range. You do have the right mindset—it is important to have a steady habit of depositing funds. Good luck, you WILL get there.
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