I am 21, and recently started learning about personal finance and retirement. I come from a community where you work till you die. There is no knowledge of retirement funding, and I want to help change this trend.
I love the ROTH IRA because it allows you to save for retirement tax-free! The money you put in the account grows and grows until you start pulling it out when you retire at a minimum age of 59.5 years. You can contribute a maximum of $5,000 if you are under 50 and $6,000 if you are over 50. You can also withdraw your after tax money at any time, no penalty. If you are a purchasing your FIRST HOME you can withdraw any contributions and up to a lifetime maximum of $10,000 in earnings.
It’s a pretty great vehicle, if you ask me. After doing a lot of research, I realize that it is way better for me to start investing now instead of later. I am going to open one as soon as I get my first job, which will hopefully be soon.
Have you opened up a ROTH IRA? Where did you open it? How much do you contribute to it every year? If not, when are you planning to open a ROTH IRA?