Roth IRA

By Terry Savage on February 04, 2025 | Investments

My 23 year old grandson wants to open a Roth IRA. Any suggestions on a good mutual fund? Should he go through an agency or do it himself on line? Thank you.

Terry Says

He should go to Fidelity.com or Vanguard.com and open his IRA in the S&P 500 stock index fund. He can contribute up to $7,000 if he earns that much this year. (And he has until April 15th to make a contribution for 2024.)
There is no tax deduction for a Roth. And he must have earned income. But if you want to be a good grandpa –and he can only afford to contribute a smaller amount — you might offer to “match” his contribution!! That would be a great incentive!

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