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GGWM Girls: Opening your Individual Retirement Account

GGWM Girls: Opening your Individual Retirement Account

By TheBudgetnista -  Tags: , ,

So here's the most important retirement advice you can ever receive: START NOW.

Retirement may be years or even decades away, but early planning is key to securing the life you want to after retirement. (Sidebar... I named my future self "Wanda" because it helps me visualize my sassy, senior years living out my permanent vacation dreams). The scary truth is that today many middle-aged adults are approaching retirement age with little or no savings to fall back on in the golden years.

Here are some alarming stats from The Motley Fool:

  • 1 in 3 Americans have nothing saved for retirement
  • The average 50-year old only has $60,000 saved for retirement 
  • The average social security check is just $1,355 per month

Uh-uh! Not on my watch (Iyanla voice)!

So... I’ve been in the lab with Jully, a.k.a the Investing Latina, to create this easy way for us to learn about following some women who have some of the same "life" things going on that you and I do.

We're calling the series... Get Good With Money Girls.

Ashley, Maria, and Tamara are all at different income levels, with unique goals and needs, yet they are all starting on their 2021 goal of INVESTING. Follow their stories on my social media platforms and blog to find simple strategies to invest at any stage of the game. 

Last time we introduced you to our three amazing women, what they do, how much they earn, and their goals for the year. If you missed it, you can read it here.

If you're ready to learn how to open your individual retirement account, check out what my girl, Jully, has to say below!

Hey Jully!

Hey everyone, welcome back to our series “Investing 101 with the Get Good With Money Girls”.

This week I’m giving you a list of all the things you need to open an investment account on your own, outside of your company-sponsored accounts.

If you have not yet signed up for your company-sponsored accounts like 401k, 403(b), 457, etc.––email Human Resources right now and ask them to give you the link or paperwork to sign up!

Remember: Don’t leave money on the table by not participating! 

Now, if you are signed up to your company-sponsored account (or perhaps don’t have access to one), and are ready to set up an Individual Retirement Account, here is what you need to know:

Before you start an IRA

  1. Know what type of account you want: pick between a traditional IRA or a Roth IRA.
  2. Know how much you are going to initially deposit, keeping in mind that the limit is $6,000 for 2021.

What you’ll need:

  1. Your basic personal info including your address, your email, and your social security number
  2. Your bank routing number and your account number 
  3. The birthdays and social security numbers of your beneficiaries

Steps to opening account

There are a lot of places where you can open your Individual Retirement Account. I always love to recommend that people use discount brokers like Fidelity or Vanguard. I call them the Marshall’s and TJMaxx’s of investment banks! They keep the cost of investing low for their clients, and I love a good deal! Fidelity and Vanguard are brokers that have been around since 1946 and 1975, respectively. So there is a lot of history and reputation behind them, which is another reason why I recommend them. 

Opening the account doesn’t get much more complicated than entering the information I listed above, but one of the questions you’ll get asked when opening your investment account and depositing your initial funds, is to choose a “core position.” A core position is where your money is held once you deposit it and before you invest it. You will typically get two options: an FDIC insured account or a money market account. Again, these are just placeholders for your cash, you have to go in later on and make your investment selections. So it truly doesn't really matter which one you pick, just pick one and get prepared to start investing! 

Have an investing question, you can #AskMeMoneyThings (Jully) by texting me at 917-636-4049 or by clicking here

ALSO... the last time Tiffany and I hosted an IG Live, I shared my FREE Guide to Money & Investing - you can download it here, it’ll help you organize your money intentions, ideas, and goals.

Psst... Are you good with money?
Take my Financial Wholeness quiz by clicking here.

It's Tiffany here, did you hear about my new book? I wrote Get Good With Money to help move you towards a more complete, holistic approach to managing your money and living a much richer matter where you and your finances are right now. ⁠Secure your copy here,

Disclaimer: Please keep in mind that we are not certified financial planners, and that by investing you take on risk, so be sure to not construe this as investment advice, but rather as educational content.

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Tiffany “The Budgetnista” Aliche is quickly becoming America's favorite, personal financial educator. The Budgetnista is also an Amazon #1 best selling author (The One Week Budget and Live Richer Challenge), sought-after speaker and teacher of financial empowerment.
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