Ira standard vs Roth
Im a 58yo female-have no retirement plan. Would like to start with a plan-Can I go through my Statefarm agent for a Roth Ira. What would be the best route/action to take? Roth ira, standard ira?? At this age to start “some type” of plan? Lost and confused. Thanks
Terry Says
I am going to be very specific. I love State Farm and have their insurance. But that is NOT where you open an IRA!
For starters, you need earned income to open an IRA– so I’m assuming you have a job. If so, you can contribute up to $7500 for 2022 (if you make the contribution before your taxes are due on April 15th) PLUS another $7500 for 2023 at any point this year.
Do you have that kind of money in savings? I’d prefer you open a ROTH IRA — which means you don’t get a tax deduction, but it all grows tax free. If you can make those TWO contributions this year, you will have a great jump-start on a retirement fund.
But even if you only have $1,000 you can open an IRA– and ask them to take an automatic monthly contribution to it out of your checking account.
So here’s where to go:
Go to www.TRowePrice.com — https://www.troweprice.com/personal-investing/index.html
Or call them at 800-638-5660.
Just say you want to open a ROTH IRA.
And you want to invest it in the T. Rowe Price Equity-Income Fund. This is a conservative stock fund (my personal, long-time favorite, so my money is in there with yours!).
Put as much money in for 2022 as you can right now. Then have them start a monthly automatic plan to keep contributing.
You’ll be glad you did this in 20 years!!
Please write back if you get stuck. You can do this!
