Ask Terry Questions How to Open a Roth IRA

How to Open a Roth IRA

By Terry Savage on March 07, 2020 | Financial Planning / Retirement

How do you start a Roth IRA?

Terry Says

Well, that’s a big question. I’m tempted to just suggest you buy my book — The Savage Truth on Money — where the process is described in detail. But as a shortcut, just call Vanguard or Fidelity (1-800-Vanguard OR 1-800 FiDELITY) and ask them to help you through the process. It’s really pretty easy. But you must have at least $6,000 earned income to make a contribution (%7,000 if over 50). You’ll have the money taken directly out of your bankaccount and put into the IRA. Then you have to decide how to invest it. Probably given these wild markets, you’ll just stick with a money market mutual fund for a while, until things quiet down. But they’ll help you decide on a good mutual fund based on your age, and risk tolerance, in a few months.



a personal
finance question