IRA — How to get started
Hi, I wanted to know is it too late for me to invest in a (IRA ) I’m 56 yrs. Old . and I would like to have an income to rely on as I get older I know I’m starting out late
Terry Says
It’s never too late to start — as long as you have “earned income” (from work either on a W-2 form or 1099).
You can contribute up to $8,000 this year, if you earn that much. I’d suggest starting an IRA account at Vanguard or Fidelity. If you don’t need the tax deduction, make it an after-tax ROTH IRA.
You’ll be asked how you want to invest. If you can put the entire amount in at once, do so. Put half in a money market fund, and half in a “balanced fund.” or equity-income fund. The tell them to automatically move a small portion of the money market fund into the stock fund every month, slowly moving another 25% into the equity fund over the course of the next 8 months.
By then you’ll be ready to contribute again next year! Do the same thing.
