At what age should I begin to invest in an IRA?

Answer 1

Generally, the sooner you start the better. However, if it is a matter of funding an IRA or completing your education sooner, then complete your education. The better your education, the more you make and the better off you are in the long run.

Another thing to consider is building up an emergency fund - 6 months of living expenses. If you ever lose your job or get hurt and have to pay out-of-pocket medical expenses, you'll be glad you have it. You can use your IRA for that, but you'll pay a 10% penalty for early withdrawls. I dipped into my retirement when I lost my job. That penalty really hurts.

One other thing: You can pay into an IRA as well as as fund a 401(k) or 403(b). That's a good idea.

Personally, I'd build the emergency fund first. However, you have to weigh the factors in your life and make that decision for yourself.

A good book to help you out is "Personal Finance for Dummies."

Answer 2

You should begin to put money into an IRA as soon as you possibly can. You can legally do so at age 18. Even if you are not consist ant or you stop after a few years or you stop and start again, the magic of compound interest will make you love your totals as the years roll by. If you do a Roth IRA you may be able to take the principal out to put a down payment on a house (it may have to be primary residence). If you do a truly self directed IRA you can even invest it in real estate, etc. instead of only in mutual funds or NASDAQ, etc.

GL!

Answer 3

As soon as you have earned income (usually income reported on a W-2) is usually the best time. However, it is best to pay off whatever debt you have first, and then put aside in a savings account 3-5 months worth of salary before you start investing in anything. What sense does it make to put money into an IRA that may earn 7% while you have credit card on which you are paying 14% interest?

Also, if you are working, it is usually better to take advantage of a qualified retirment plan thru your employer, such as a 401(k), seeing that most emlpoyers offer some type of match.

Answer 4

Age isn't the deciding factor. Don't invest in an IRA until you have your debt under control, and you have 6 months living expenses in savings. Remember, you won't be able to get at the IRA money until you're 55 without paying a 10% penalty. Also, IMHO, it's more important to save for a down payment on a house than to put money into an IRA.

Answer 5

As soon as is possible to build for your future. Also, consider some municipal/county CD's that pay better interest and you don't pay the city/county tax when you take the $ out and you can keep reinvesting in bigger ones over the years. What city or county is going to go under unlike the stock market.

Answer 6

as soon after completing school as you have steady income if you aren't then in a 401(k) or similar plan at work.

I say after school as the returns [higher income] to getting that degree are just too good to pass up.


GL

Answer 7

As soon as you start earning money. The earlier the better!

Answer 8

the sooner the better!

Answer 9

.A bank can fill you in with all the answers

Answer 10

ASAP.