Author Topic: Opened a Roth IRA... in college!  (Read 4525 times)

grantmeaname

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Opened a Roth IRA... in college!
« on: October 15, 2012, 01:19:29 PM »
I've gotta share my moment of badassity, even though it pales in comparison to some of the ridiculous accomplishments of my fellow forum-goers! I'm a junior (ish) in college, and I just took a year off to work in an Americorps position. I saved nearly half of my less-than-minimum-wage stipend thanks to the magic of living like a college kid and splitting expenses with half a million roommates, and I'll be receiving an educational award in January to cover my school expenses for next semester. That means I had $3000 to send off to Vanguard! I'm officially a partial owner of the US economy!

(I went with VTSMX, and while I only sent the minimum I may be able to top up to $5000 before 4/15.)

jpo

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Re: Opened a Roth IRA... in college!
« Reply #1 on: October 15, 2012, 01:42:28 PM »
Congrats, make sure to take the tax credit!

grantmeaname

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Re: Opened a Roth IRA... in college!
« Reply #2 on: October 15, 2012, 01:48:49 PM »
I actually might not have made enough in 2012 to take the credit (like I said-- less than minimum wage), and it's nonrefundable. That's a good reminder and I should look into it, though.

carolinakaren

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Re: Opened a Roth IRA... in college!
« Reply #3 on: October 15, 2012, 02:17:47 PM »
I wish I had been investing while I was still in college!  I'd say what you've done is much more badass than you realize.  The environment that a typical college student is exposed to doesn't exactly encourage this kind of forward thinking.  I suspect your peers aren't thinking much farther ahead than Thanksgiving break!  You are obviously mature beyond your years and that is priceless.  I hope you can get to your $5k goal.  Congratulations on the educational award also. 

sol

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Re: Opened a Roth IRA... in college!
« Reply #4 on: October 15, 2012, 03:23:40 PM »
Such foresight for someone in Grant's early-stage position is worth millions of dollars down the road.  Keep spreading the good word.

After I finished grad school I started playing with retirement calculation spreadsheets, comparing saving rates and expenses and growth scenarios.  My family was exasperated that I was planning an early retirement before I even had any job offers.  Then again, everyone else in my family is still firmly ensconced in the consumerist Matrix. 

It never hurts to have a plan, as long as you accept that you may someday need to change it.

Melissa

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Re: Opened a Roth IRA... in college!
« Reply #5 on: October 15, 2012, 07:36:35 PM »
That is quite an accomplishment Grant!  With so many kids carrying large amounts of both student loans and consumer debt, your efforts are inspiring.

Keep up the great work, you still have months to go for the other $2000!

Nords

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Re: Opened a Roth IRA... in college!
« Reply #6 on: October 15, 2012, 08:52:44 PM »
I saved nearly half of my less-than-minimum-wage stipend thanks to the magic of living like a college kid and splitting expenses with half a million roommates, and I'll be receiving an educational award in January to cover my school expenses for next semester. That means I had $3000 to send off to Vanguard! I'm officially a partial owner of the US economy!
I don't mean to be a buzzkill, but is the stipend considered to be earned income of the 1099 or W-2 variety?

The reason I'm asking is that our college daughter's stipend is not considered earned income, so she can't use it to contribute to her Roth.  But it may be a different flavor of stipend.

But, hey, an extra $3000 is an extra $3000 no matter where you save it!

arebelspy

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Re: Opened a Roth IRA... in college!
« Reply #7 on: October 15, 2012, 09:10:54 PM »
Congrats.

Good choice on everything (Roth, Vanguard, Fund).

You'll be one of the youngest FI people around.

Don't forget to enjoy these years as well.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

grantmeaname

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Re: Opened a Roth IRA... in college!
« Reply #8 on: October 16, 2012, 06:39:50 AM »
Thanks everyone for the kind thoughts!

I don't mean to be a buzzkill, but is the stipend considered to be earned income of the 1099 or W-2 variety?
The stipend is a "cost of living award" that had taxes withheld as if it were a wage, so I think I'll be seeing a W2 for it. The educational award is a distribution that I'll be receiving a 1099 for, much like I would if I received scholarships above and beyond the cost of attendance and was refunded the difference.

Nords

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Re: Opened a Roth IRA... in college!
« Reply #9 on: October 16, 2012, 02:13:20 PM »
The stipend is a "cost of living award" that had taxes withheld as if it were a wage, so I think I'll be seeing a W2 for it. The educational award is a distribution that I'll be receiving a 1099 for, much like I would if I received scholarships above and beyond the cost of attendance and was refunded the difference.
Sounds like a great deal.