Hello everyone,
I am in need of some help. I am 22 (23 next month) years old and not really savvy in terms of investing. I know I want to open a Roth IRA, but I'm not really sure who to use to open this account. I think I want to invest in Vanguard, but you have to have $3k to open an account with Vanguard. My husband and I are actually putting an offer in on a home today, so most of the savings we have will go towards the 20% down payment. Saving for a house is actually why I haven't previously opened an account, but now that we have that money I want to start investing for the future. Any ideas on who I can use to open an IRA that will let me invest in Vanguard without having to have a lot of money to put towards it initially?
It sounds like you eventually want to end up with Vanguard, but the minimum balance is your main hesitation at the moment. In that case, why not wait to open the account until you have enough saved up? You have until April to make IRA contributions for this year. I would happily forgo the expected return on a couple thousand dollars for a few months if it meant avoiding the hassle of switching IRA providers.
I recommend that you first get your house purchase finalized and wait a few months after you move in to see if any unexpected house-related expenses pop up. Once you're settled into the new house and have a good handle on your new financial situation, then open up an IRA account with Vanguard for the long term.
Also, do be aware that while Vanguard's minimum for most funds is $3,000, you can invest in their target retirement funds for only $1,000.