Good Investments For Young People
Should I open a Roth IRA at 22, or is there a better way to save my money for retirement?
I’ve just graduated college and started my first full-time job a couple months ago. Lately I’ve been reading articles about Roth IRA’s and how young people should consider them because they can save a huge amount of money by the time they retire with the smallest amount of input (since they’re getting started earlier). I know I’m still young, but I want to set myself up for a comfortable future. I’m making $35k/year salary, but my company does not have a 401K plan (as of yet).
I would like to try putting away $250 a month in order to create a nest egg for when I retire (and maybe allow myself to retire a little earlier?). Is a Roth IRA the way to go, or is there something better I could do with my money to allow it to increase over the years? I don’t know much about this stuff and don’t even know where to start. I do know that IRAs have something to do with Investments, which is risky and scares me a little…
Absolutely.
Congratulations on wanting to start saving at a young age.
Do a internet search on “Roth IRA” and read up on them.
A good company to get started with is Vanguard. http://vanguard.com/VGApp/hnw/CorporatePortal
A good fund to invest in is the Target retirement funds. These funds select the investment for you and is more aggressive early but automatically changes to more conservative as you near retirement.
Here’s a link to Vanguard Target fund assuming you would retire on or about the year 2050…https://flagship.vanguard.com/VGApp/hnw/funds/snapshot?FundId=0699&FundIntExt=INT
Good luck.
Investment Facts : What Are the Best Investments for Young People?