Invest it in a target retirement fund over 40 years old. Choose a Roth IRA provider such as Fidelity. Go to their website, create an account and open a Roth IRA. Can anyone give me any advice on opening a roth ira account? I feel completely comfortable holding money and sitting and letting it grow over time instead of being super aggressive and trying to work in the stock market or whatever.
Just looking for some simple advice really. Vanguard, Fidelity and Schwab are the three most commonly recognized providers here. Fidelity, Schwab or Vanguard are the most common recommendations here. By the way, you are allowed to invest substantially more per year in a traditional IRA than in a Roth IRA.
You usually need to leave 6 months' worth of expenses in your savings account and put the rest in a Roth IRA. Because Roth deposit has different rules than check deposit, you can now use the cash from your Roth deposit to buy other investments, such as stocks, mutual funds, bonds, etc. That said, a Roth is a Roth no matter where you go, so if you prefer, for example, TemeriTrade, you should be fine. You open a Roth IRA somewhere and are free to buy any stock or fund (usually mutual funds) with the money.
You will be asked to finance it, which happens when you move some cash from the check deposit to the Roth deposit (this movement of funds is your contribution to the IRA). I've been reading a lot about Roth IRAs and it seems like it might be a good idea to start something like that, but honestly, I'm not a finance guru or anything, I didn't even take business or finance classes in college, I just spend the money I have. My company has a 401k plan through Fidelity and I decided to open a Roth IRA and some investment accounts with them. I wanted a Roth IRA because I understand that I use money that I have already paid taxes on, so I don't have to worry about that in the future.
I am a student who plans to leave their money (~5k or more) in the Roth IRA for the next few years and invest more in the account once I have graduated. A Roth IRA is a different type of deposit than a checking account, which is different from a savings account deposit, etc.