23 Year old Stock buyer

[anonymous_saver]

I wouldn't put your money into stocks unless you have a solid emergency fund already saved up.

In your situation, I would probably just wait until you open your Roth IRA. When you do, I would go with Vanguard because of their crazy low fees.

[EdMan2]

Can someone please explain to me the income restrictions on roths? I hope to one day make more money than what the restrictions are....how does this affect me? If i start a roth now, and contribute the max to it for lets say 10 years...but then by that time have too much income to qualify to contribute anymore, what happens? Does my money just sit there earning interest? Do I have to take it out? Does it change anything?

Also, is there a minimum I have to contribute?

[disneysteve]

If i start a roth now, and contribute the max to it for lets say 10 years...but then by that time have too much income to qualify to contribute anymore, what happens?

Also, is there a minimum I have to contribute?

i don't know the income limits offhand. I'm sure you can google that one.

As for a minimum, that depends on where it is invested. With Vanguard, I believe it is $3,000 for most funds but there are many places with lower minimums. Annual fees may apply if your balance is below a certain level.

If you contribute for a period of time and then become ineligible to contribute, nothing bad happens. The account remains active and continues to grow. You can still make transactions within the account, buy and sell stocks or funds, transfer the account to another company, whatever you want. You just wouldn't be able to add new money. My wife and I each have a traditional IRA and a Roth IRA due to changing qualifications over the years. We are currently only contributing to the Roths but the traditional accounts are still active and growing.

[LuxLiving]

To clarify - the brokerages have a minimum to OPEN or get started in a fund, and then you don't have to keep contributing if you don't want to. UNLESS, you sign up under an agreement of so much per month, which some of them do offer for those who don't have their minimums to begin with.

i.e. Johnny is 18 and wants to start contributing to a Roth but doesn't have $2500-3000 to begin with, then he can open some accounts with an automatic debit from his checking EACH MONTH.

[George23]

It seems like mutual funds in a Roth IRA are what would be the best choice for you to investigate further. Do you think that you would be eligible for any scholarships when you go for your masters in a couple years? (If not then students loans or help from an employer is probably the best bet).

[EdMan2]

It seems like mutual funds in a Roth IRA are what would be the best choice for you to investigate further. Do you think that you would be eligible for any scholarships when you go for your masters in a couple years? (If not then students loans or help from an employer is probably the best bet).

Yea I'm looking at this right now. Probably going to stick with Vanguard and have a mututal fund or one of their plans that changes its risk model as you get closer to retirement.