Hello, everyone. I have been noticing that even though I am contributing faithfully to my 401K every month through my job, that I would like to increase my retirement income possibilities.
First, though, I need to get the regular emergency savings up to at least $1000 and get rid of some liabilities, including getting the lawn mower and my medical bill paid off. I will also make a significant payment to the credit card. The lawn mower, medical bill, and credit card are slated to happen in June. The emergency fund is already in progress.
Later this year, after all this is accomplished, I want to open a Roth IRA and contribute about $500 a year to start. I would like to invest it in ETFs. When I went to my retirement company website, it looks like I can basically mail in contributions whenever I want, like monthly, quarterly, or right before tax time. For those who actually do have one, is it easier to contribute say monthly so that $50 or $100 is not as painful as $2000. What do you think?
Roth IRA
April 11th, 2011 at 12:21 am
April 11th, 2011 at 01:01 am 1302483687
April 11th, 2011 at 02:00 am 1302487230
April 11th, 2011 at 04:36 am 1302496602
Do you know what your broker will charge you?
April 11th, 2011 at 02:53 pm 1302533591
It is generally best to fund it up front if you can.
If you were waiting to save the $500 and then fund it? It is much easier to send it in a little piece at a time. That way, it doesn't get diverted elsewhere, and you are in the market sooner.
That said, when I had a 401k or something similar, I would just lump sum our IRAs after the end of the year (before April 15th). We would decide how much extra we could afford to put in after the year was over.
So, basically, I say do whatever works for you. Every method has their place!
May 13th, 2011 at 08:41 pm 1305319263
Jerry