Investment
I have a account with Schwab, I want to open an ROTH IRA, I have $7000 a year to invest either monthly or one lump sum. My question is what percentages and what funds should I contribute and what are some suggestions for the next 30 to 35 years being that I’m 21 years old?
Terry Says
Since you’re only 21 years old, I’d suggest you just invest the whole thing in the S&P 500 Index fund — the broad-based market index. Since you’re just starting out, put half in teh s&P and half in a money market fund. Then give instructions to move say $1000 from the MM fund automatically into the S&P 500 fund for the coming three months. Then you’ll be fully invested. Plan to stay that way, and keep contributing regularly through all the ups and downs of the market for the next 50 years!
Next year, set up automatic monthly contributions to your IRA. If it happens automatically, you wont see it and won’t be tempted to spend it!
