The Roth IRA is an excellent vehicle for your retirement funds, since you won't have to pay taxes on the money you withdraw. Start by opening an account and depositing funds into the account. Once the money is there, you can choose how you'd like to invest your money -- in risky, but potentially high-gain investments if you have several years until retirement or in low-gain, but safer investments if you'll retire soon.
Minimum to Open
Companies have minimum requirements that you must put into the account when you first open it. In many cases, the amount starts at around $1,000, according to "Kiplinger." Once you've opened the account with this money, however, the money is available for investing as you see fit.
If you don't have a large chunk of money with which to open an account, you may be able to bypass the minimum investment amount by setting up an automatic investing plan with the company. In this case, link your investment account to a checking or savings account, then agree to allow the investment company to withdraw a specified amount every month. The lowest monthly amount is usually $50, according to "Kiplinger." This money is also immediately available for investing.
Some investments options, such as stocks, bonds and CDs, require you to purchase the full shares of the item you want to invest in. In these cases, you may need to wait until you have enough in your Roth IRA before you can invest the money. For example, if you're on the $50 a month automatic plan and only have $50 in you account, but the stock that you want to purchase is trading at $100 per share, you'll have to wait until you deposit your second $50 to make the purchase.
Partial Share Investing
When you invest in mutual funds you can purchase a partial share in the fund. For example, if you want to purchase a mutual fund costing $100, rather than a stock, and you only have $50 in your account, you could immediately invest your $50, owning .5 shares of the mutual fund.
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