How To Set Up A Roth IRA
Starting a Roth IRA is not hard to do. There are a number of providers that will be more than happy to help you make this process easy.
First you need to know if you are eligible to set up a Roth IRA account. Most people are. You must have income from a job or business and you must make less than the current income limit. Income limits change from time to time so check with the IRS or your investment bank to see if you qualify.
Decide how much money you want to invest. The government does not require you to have a minimum amount in your Roth IRA, but most providers will. If you do not have a lot to invest, you may want to think about letting your money grow in a savings account until you are able to invest in a Roth IRA. Contact your bank to see if they have a minimum requirement to set up a Roth IRA.
Choose your provider. You can set up a Roth IRA at a bank, mutual fund company, brokerage firm or insurance provider. Discuss the risks with each provider, to make sure the level of risk fits your investment style.
Ask about any fees before you open an account. Some providers charge higher fees, so be sure you know all fees involved before choosing what provider to use.
Now you are ready to open your Roth IRA account. You will be asked to choose beneficiaries. Your first beneficiary is usually your spouse, but you should choose secondary beneficiaries. These people will receive the money in the event both you and your spouse are deceased.
Now that your account is open, start investing and watch your money grow!