How to Open a Roth IRA in Less than 45 Minutes

We?ve talked about tax-advantaged savings before, but I actually just helped a friend get set up for a Roth IRA, so I thought I?d share some findings, and open discussion to readers ? do you save money in a Roth IRA, IRA, 401K, or other tax-advantaged savings vehicle?? How much do you save ? and what do you invest in?? (Pictured: Alexander Wang Quillon perch wallet, available at The Outnet for $142.50 (was $285).)

15 minutes: Figure out which online broker you want.? I?ve always done all of my investing online ? my father started me a Schwab account as a graduation gift after college, and my husband and I started a Vanguard account together when we got married.? They?re both really easy to set up and maintain ? I have a slight preference now for Vanguard because I feel like they have a wider selection of index funds and lifecycle funds, all with very low fees, but Schwab has them as well.? Two things of note if you?re setting up a Roth IRA:? Vanguard?s minimum to open an account is $3,000, but Schwab?s minimum is only $500. ?? (I have no business affiliation with either of them ? they?re just what I?m familiar with personally.? Readers, if you have other suggestions, please share.)

15 minutes: Fill out the paperwork.? You can actually open an account online through both Vanguard and Schwab.? For my friend, we downloaded a PDF, filled it out on the computer, printed it out, signed it, and slapped it in the mail.

5 minutes: Figure out how much to contribute to the Roth IRA.? As a reminder:? a) you can only contribute ?earned income? (so if you?re a student who made no money in 2012, you can?t contribute anything).? b) You can contribute a max of $5,000 (until you get older), and c) You can only contribute to a Roth IRA if you make less than $125K (for singletons) or $183K (for marrieds filing jointly).? See our earlier post for more details.

5 minutes: Pick which fund to invest in.? Most online places offer a free consultant over the phone ? ask about ?low fee index funds? and see if they can direct you to a specific ticker symbol.

You actually have until the tax filing deadline to open a Roth IRA for this year, so there?s no rush? but sometimes it?s nice to get these things off your checklist by the end of the year.

Readers ? do you contribute to a Roth IRA?? In general, what age did you start saving for retirement ? and do you wish you?d done it earlier?

(L-#)

(P.S. What other topics would you guys like to discuss (or revisit) for our next Tales from the Wallet?)

Source: http://corporette.com/2012/12/19/tales-from-the-wallet-how-to-open-a-roth-ira-in-less-than-45-minutes/?utm_source=rss&utm_medium=rss&utm_campaign=tales-from-the-wallet-how-to-open-a-roth-ira-in-less-than-45-minutes

chicago bears elizabeth taylor casey anthony chris brown cam newton danielle fishel aaron rodgers