I want to start a Roth IRA, how do I get started?

[thahenchman]

I'm a student with a pretty low income, can I still open one up and if so where do I start?

 

[DaveSimmons]

You can only put in an amount up to your earned income for 2004, or max of $3,000 if you earned more than that.

If you have a good idea of what you'll earn this year, you could also put in money for 2005.

How much do you want to invest?

 

[gopunk]

you would go to a brokerage... a place like vanguard or ameritrade would be good if you don't have any advanced needs. they have minimum deposit amounts though, usually around 1-3k.

 

[Blieb]

Whatever you do, do NOT, I repeat, DO NOT call an Investment Firm and ask these questions. That's probably the worst thing you could do.

 

[thahenchman]

Originally posted by: DaveSimmons
You can only put in an amount up to your earned income for 2004, or max of $3,000 if you earned more than that.

If you have a good idea of what you'll earn this year, you could also put in money for 2005.

How much do you want to invest?

I earned about $10k last year, so I guess the max I can invest is $3k? Good to know, thanks. Is Fidelity better, Ameritrade or Vanguard?

 

[kermalou]

go to scchwab or somewhere and ask them for an application

 

[Anonemous]

Originally posted by: Blieb
Whatever you do, do NOT, I repeat, DO NOT call an Investment Firm and ask these questions. That's probably the worst thing you could do.

then who's he supposed to ask?

 

[wiredspider]

Originally posted by: Anonemous

Originally posted by: Blieb
Whatever you do, do NOT, I repeat, DO NOT call an Investment Firm and ask these questions. That's probably the worst thing you could do.

then who's he supposed to ask?

OT Forums on AT

 

[TechnoKid]

Originally posted by: wiredspider

Originally posted by: Anonemous

Originally posted by: Blieb
Whatever you do, do NOT, I repeat, DO NOT call an Investment Firm and ask these questions. That's probably the worst thing you could do.

then who's he supposed to ask?

OT Forums on AT

 

[DaveSimmons]

Originally posted by: thahenchman
I earned about $10k last year, so I guess the max I can invest is $3k? Good to know, thanks. Is Fidelity better, Ameritrade or Vanguard?

I'm a fan of Vanguard, and their VFINX mutual fund (based on the S&P 500 index).

VFINX is about the safest stock-based investment you can make if you hold it long term (years), and over time VFINX and other S&P 500 index funds outperform most actively traded / stock-picker mutual funds. If you set up a brokerage account at Vanguard you also can buy VFINX shares without paying a trading / transaction fee.

Disclaimer: I have a nice chunk of VFINX, but my own brokerage accounts are actually at Schwab (so I do have to pay a trading fee when I buy VFINX shares, d'oh!). I don't recommend Schwab as a brokerage since they offer great service but charge higher fees and require a high minimum balance. My accounts are only there because I took a friend's advice on my first 401k rollover back before Ameritrade and scotttrade were around.