Automatic paycheck withdrawal to invest
How can my daughter set up a regular automatic withdrawl from her paycheck to to regularly invest in an existing brokerage account with an s&p index fund that she has.
Terry Says
Does her employer have a 40l(k) plan? If so, that’s how she should deduct from her paycheck. that’s the place to start, especially if the employer matches her contribution.
If the company does not have a retirement plan, then she should have her paycheck direct deposited to her checking account. And from that bank account she can set up an automatic monthly contribution to a Roth IRA with Fidelity, Schwab or Vanguard — and put it into an S&P 500 index fund.
Note: the money should be going into an IRA (preferably Roth) — and not into an after-tax account. That makes no sense.
