Ask Terry Questions investing for retirement beyond an IRA

investing for retirement beyond an IRA

By Terry Savage on October 04, 2015 | Investments

Hi, I have a Roth IRA that I contribute the maximum to each year but at my work I do not have a retirement plan of any kind. I also have some individual stock thru Interactive Brokers but not confident enough in my self to put more money in this. How else can I save money for my future?
What happens if I put more $’s than the allowed amount in my Roth IRA?
Thank you!

Terry Says:  Well, if you’re under age 50, you can put $5,000 a year in your IRA — no more.  But that doesn’t mean you can’t save and invest more outside an IRA.   Here’s an easy way to do it.  Go to T. Rowe Price (800-638-5660) and open an account in their Equity-Income Fund.  Just have an automatic deduction from your checking account each month.  And if you need more “liquid” savings, also open an account in their money market fund.   Keep adding to the Equity-Income fund for the long run.  Why do I recommend that fund?  Because I did that nearly 40 years ago, and it has been an outstanding performer, top-rated by Morningstar, over the years.  And I still own it!



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