The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: BriArrange on January 02, 2015, 01:44:26 PM
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I've just recently found this site, and since then, I have opened an HSA account, paid of 1 of 3 student loans, and and now am in search of opening a Roth IRA. But I would like some advice since I am very new at all of this....
Where is the best to open a Roth IRA?
I don't have a lump sum saved up yet to meet some of the minimums required, but I have done some researching and I know some places such as Fidelity and ETRADE do not require a minimum amount and allows me to make monthly automatic payments. Are these recommended? If not, where else can I do this that is a better choice?
Any advice is greatly appreciated. :)
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I've just recently found this site, and since then, I have opened an HSA account, paid of 1 of 3 student loans, and and now am in search of opening a Roth IRA. But I would like some advice since I am very new at all of this....
Where is the best to open a Roth IRA?
I don't have a lump sum saved up yet to meet some of the minimums required, but I have done some researching and I know some places such as Fidelity and ETRADE do not require a minimum amount and allows me to make monthly automatic payments. Are these recommended? If not, where else can I do this that is a better choice?
Any advice is greatly appreciated. :)
I use TD Ameritrade. You can buy tons of Vanguard ETFs commission free through them--I buy 2 or 3 shares of VTI every week and there are no fees whatsoever! I think you can open it up with $100.
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Is early retirement a goal for you? If so, a traditional IRA or a blend may be better than 100% Roth. What is your current tax bracket? Do you have access to a 401(k) with matching?
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Thanks for your guy's help and advice! I do not have access to a 401K, but my husband does with matching...so we have been puting as much as we can into it. But we don't want to solely rely on his 401K. So, I am planning on opening up an IRA account.
Or is this unneccessary?
Early Retirement is a goal for me...but my husband, who is an engineer and farmer, plans on working for as long as he can.
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I assume your husband is contributing the max $18,000 per year. It might be better for you to do the Traditional IRA for now so you can get the tax break now and then later use a Roth conversion ladder once you are near FI to get many years of tax free growth.
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If your husband plans on working forever, it is probably a toss up between the ROTH and Traditional in the long run. Assuming he is funding a traditional 401(k) at work, the ROTH will provide some additional tax diversification. Be aware that you can "recharacterize" and change IRA contributions from one to another within a certain time frame. This can be very useful if you have a very good (favor the traditional) or very bad year (favor the ROTH) on the farm.