A lot of people put off starting an IRA mainly because they either don’t have the money to start one or they don’t know how to start one. Some companies such as Schwab and Edward Jones require $1000 to $2000 just to open an IRA account, while others like Etrade can now be opened with $100.
First things first, don’t be afraid to open your account.
Now with the age of computers you can open account in less than an hour. Simply go to the website of the company you want to open your account with and read the requirements before you start the account.
Make sure you meet the requirements. Be sure you have the funds available to open the account. Check to see what they charge for fees and commissions. They all charge to make a trade (buy and sell stocks). This fee can be about $8- $10 for most companies.
Once you have opened your account it’s time fund it. By the time you are eighteen you hopefully have some money saved in a checking or savings account or a shoe box.
Baby steps is all we’re talking about to start.
Once you start setting aside a little each week you’re on your way. Discipline yourself to putting $10, $20, $30 into your account each week. If you can do more great. Some employers may be able to do automatic deposit for you. That way you don’t see it, don’t handle it, and don’t spend it. Whether you’re 18 or 25 or 30 you need to get started now, right now not next month. After all it’s your future you’re working on.
There are two types of accounts, one where you pay a broker and the other is self directed. Brokers will charge you fees to manage your account. Self directed will only cost you the trading fee. Wait until you have a minimum of $1000 in your account before you start buying stocks. Do your research and watch the ones you’re interested in. This way you can buy more shares without paying more trading fees.
The difference between rich people and broke people is … broke people save after spending and rich people spend after saving.
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