Best way to start a retirement fund at age 20.?

Question

I'm 20 years old.

I'm a 3rd year college student.

I have student loans that I pay the interest on right now.

I want to know what is the best way of starting a retirement fund at my age that won't require me to put it a lot of money.

How do I go about starting up the fund you recommend?

I just want to start now because I know for my generation, retirement money will be an issue.

Answer 1

Wow, It great that someone your age is thinking about retirement. You can start a Roth IRA this will only require around $25.00 a month to start. Look for a financial representative in your area. These individual will help you start your retirement fund, along with this they will help you plan to pay off your student loan faster, start a money market account for emergency, and so much more...These services are usually free, the only that will cost you would the money for your investment. When you have a regular job, I highly recommend you start a 401k plan in the company that you're with (if they have it), put in the highest percentage the company allow...some company match dollar for dollar. If the financial rep., is not for you, then you can go to your bank and start Roth IRA (after tax money and it is tax free when you retired at the age of 591/2 take it out before that it will cost you taxes and penalty).

You can email if you like I can recommend a company that does all this for free...(I'm not with any of these companies)

Answer 2

Sounds like you are getting a great education. Look for a no load fund (this means you don't have to pay anything to enter the fund). Check the history of the fund (how well it has done over 5/10 years) and the history of the fund manager (how long has he/she been managing the fund and how successful have they been). Fidelity has a good track record. That being said, when you find your first full-time job, be sure to find out if the company has a 401K program with employer matching. This allows you to put money into a retirement fund (up to the max %), it is pre-tax money, and the company will match your dollars up to a certain % (essentially free money for your retirement). If you ever decide to leave that company, you can roll those dollars into a different IRA with no penalties.

Answer 3

most of the mutual funds will let you get started investing with as little as $50.00 a month. you have to set up your account so that money goes directly into your investment account from your checking account once a month on the day you choose. it is a great way to invest and it happens all by itself once you get started. Look into a roth ira with is totally tax free even when you are old enough to use the money. call vanguard on their 800 line and they will help you over the phone

Answer 4

Don't wait for a 401k, start a Roth IRA, ASAP.
Look it up on the web, you can get started at most banks. The sooner you start saving for retirement, the more you will have when the time comes.
Compound interest rocks!!!!!

Answer 5

Look into a ROTH IRA through a bank.

You can put in any amount.

When you withdraw it, it is tax free because it taxed now.

A traditional IRA taxes you when you withdraw the money and by then you will (hopefully) be in a higher tax bracket and have to pay more.

Answer 6

When you start a job, they may have a 401K program, put money in it. Some mutual funds have a low initial buy in and a low minimum amount you can add.

Answer 7

Open a bank account and SAVE YOUR MONEY.
While nothing in this world is a sure thing; imo, the safest way to save is a simple savings account.

Answer 8

Get a coin jar


Justin