Best IRA for an 18 year old?

[Cullstuff]

Something my mother did for me I believe you should consider as well is building credit. My mother (unbeknownst to me) has a joint account with my name on it that she would take secured loans from (for low interest) to help build my credit. By the time I graduated high school I had credit 750+.

Crazy as the world is now, credit is as important as savings/income.

My .02


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[PondPopper]

There are some great videos on youtube discussing all of this..

[Acameron52]

I’ve got a Roth. Don’t ask me why. It’s what my financial planner told me to do. That combined with my pension and 457 will hopefully set me up nice!!

[dustoffer]

If a person that makes deductible contributions to a traditional IRA also invests the dollars they saved on income tax in a separate non-qualified account, then the traditional route can be as good or better than the Roth in the end (depending on time and tax brackets, etc). In actual practice though, almost nobody that makes deductible contributions also invests the tax savings dollars. The unicorns that do are awesome.

Well dang--never thought of it that way although I always tried to make extra payments into my investment account once I maxed my IRA. Also tried to stick my tax refund (if any) into savings, put the price of the extended warranty on a new car/truck into savings instead of buying it, etc.

[TwoHighways]

Roth, but if she plans on going to college, she may as well just put the money towards that and/or living expenses while attending said college. Unless she’s eligible for pell grants and/or subsidized loans. If that’s the case, I’d borrow all the subsidized money I could, regardless of actual need. Then roll that subsidized money into the Roth lol. Gaming the system!

[Arrowthreat]

Roth. Can't beat the tax saving advantages. I did the same thing when I was 18

[bbqfan5909]

Just pointing out it does have limitations later on.

The first time I read this I thought “Who is making $120,000 at 18!” LOL

Good for you dad for starting him/her off early, They will really appreciate it in 40 years!

[tps7742]

As stated by several already, good for you on giving your kids sound financial habits and advice.

[Bill]

I think whichever IRA type you decide,the important thing is to start now.

Even if it’s a couple hundred dollars for 2019, start the retirement savings habit.


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[12RingKing]

I think whichever IRA type you decide,the important thing is to start now.

Even if it’s a couple hundred dollars for 2019, start the retirement savings habit.


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I wish I could convince my niece of this. She’s more into hair and nails than retirement.

[DanLeaAnn]

I don’t mean to sidetrack the OP but as a 21 year old college student, is there any programs, advice, etc. y’all would recommend for somebody like me who wants to make sure I have a solid financial foundation before going off to the “real world”

I don’t have a problem paying for a program or someone’s time, but I just don’t know much other than save money and throw it in the bank...


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[TxAg]

I don’t mean to sidetrack the OP but as a 21 year old college student, is there any programs, advice, etc. y’all would recommend for somebody like me who wants to make sure I have a solid financial foundation before going off to the “real world”

I don’t have a problem paying for a program or someone’s time, but I just don’t know much other than save money and throw it in the bank...


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https://Www.bogleheads.org

Read and post your questions. You will be ahead of 95%

[Throwin Darts]

Www.bogleheads.org



Read and post your questions. You will be ahead of 95%

I second this. Great place to learn about investing and retirement from someone that’s not trying to sell you something.


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[Bill]

I wish I could convince my niece of this. She’s more into hair and nails than retirement.

Show her older people who can’t afford to retire working at minimum wage jobs- fast food or Walmart. Ask them why they’re not retired.


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[Bill]

I don’t mean to sidetrack the OP but as a 21 year old college student, is there any programs, advice, etc. y’all would recommend for somebody like me who wants to make sure I have a solid financial foundation before going off to the “real world”

I don’t have a problem paying for a program or someone’s time, but I just don’t know much other than save money and throw it in the bank...


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Buy or borrow any of Dave Ramsey’s books.

Call a financial services advisor (I suggest your local Edward Jones office- but there are many others), and have a friendly sit down and ask for their advice. That costs you nothing.


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