If you haven’t invested in a Roth IRA yet, you should do it. I know this sounds a bit obvious, but a lot of people have problems doing one thing, just jumping in! Of course, only jump in, if you have a large enough emergency fund in place and have some extra money to invest. I remember one of my first leaps of faith into investing was with the Vanguard Roth IRA. Do I regret it? Heck no – it’s great knowing I’m actively funding my future retirement and getting tax free returns on my stock portfolio.
Setting up an account and beginning to invest is really simple and in no time you’ll be able to track your performance, begin to make money, and get really addicted to checking your stocks! 😉
Why Open a Vanguard Roth IRA
If you have extra money to invest, would like the ability to tax shelter those investment dollars until retirement, and would like to invest in mutual funds and/or index funds this could be your best choice. The Roth IRA offers you tax free earnings if you don’t pull out your money before retirement. Vanguard also has some of the lowest fund fees on the market. Especially with their Vanguard 500. Vanguard also has a strong reputation and has an easy to use interface to track and manage your Roth IRA online.
What are the Minimum Contributions for Opening a Vanguard Roth IRA?
To open a Roth IRA with Vanguard requires a minimum initial contribution of $3,000 for the majority of their funds. However, each fund is different, but expect to be putting in at least a couple grand.
If you’re pretty agressive with your IRA you can contribute up to $5,000 a year in your Vanguard Roth IRA, and $6,000 each year if you’re over the age of 60. This also depends on how much income you make since there are income limits which you can read about here.
What Are You Waiting For?
Most people don’t start investing because they’re not sure to start. Don’t worry, it can be pretty easy if you take small financial baby steps. Investing in a Roth IRA is pretty straight forward. You can set it up in less than an hour, track it online, and begin investing towards your future. Stop thinking about setting up an account and take action today by placing funds in your Roth IRA.
For more information check out Vanguard’s Roth IRA site