It is never too soon or too late to open some sort of retirement account. My goal? Retire at 45 years old a millionaire. Opening accounts for retirement and/or investing seems daunting, or it did to me at least. I don't have a job that offers me anything like that so I was clueless where to start. Ya'll...it was so easy when I just did it. Here are the exact steps I took....
1 . Do some research online or ask a loved one or trusted acquaintance for some guidance (someone that already has accounts in place) to get familiar with some terms/options you may have presented to you.
2. If that isn't an option, no sweat. Depending on who you bank with, they may offer you IRA (independent retirement account) and investment options right there at the bank (mine did.) If they don't, they will be able to help you contact the people you need.
Okay so... after gathering some info on your own, go to your bank!
I literally walked in and told the teller, "Hello, I would like to talk to someone about opening up a retirement account." From there, I was directed to an office and a lady named Kathy asked me what kind of account I was interested in. I told her that I had done a little research but honestly, had no idea which type of account was best for ME.
She patiently went through each option, answering all of my questions. That's another thing, ASK QUESTIONS. ASK ALL THE QUESTIONS. Don't feel imitated or shy to ask questions about where your money is going. These people are here to HELP you.
After about an hour of chatting, I decided on both a Roth IRA investment account and Standard Brokerage Account. I chose a Roth IRA because it is pre-taxed. Meaning, when I take the funds out, I will not be taxed on them. BUT in order to avoid penalty or taxes, I cannot touch the account for a minimum of 5 years OR when reach the age of 59 1/2. Or die. Also that.
I chose to max out my yearly amount. Meaning, I put in the maximum I could for the year, which is $6,000. Only that much can be put into the account every year. There are other details too, but I recommend going into those with your advisor at the bank. Remember, lol, I am not a banker or accountant or financial advisor. I'm just here to give you my personal experience.
I PROMISE... investing is NOT as scary or hard as it seems. I PROMISE. Please, please take these steps as soon as you can to set yourself up for a better future. Even if you can't contribute the max every year, every little bit helps and will grow over time!