You Still Don’t Have A Roth?!?!
I promised I would show you how to set up a Roth IRA in my Quick & Dirty post, but first I have one request of you. Before you read any more of this, please, please, please promise to YOURSELF you will take the steps outlined below to set up this account in the next 48 hrs. Years later when you have retired, you can send me a thank you note (check is optional). Also, this is foolproof; I had to go through it myself.
The Best Multiplied Four Times Over!!!
After doing what I outline below for you, you can say that you own one of the best retirement accounts available (the Roth IRA) in one of the best no-load mutual fund indices available (The Vanguard Total Stock Market Index Fund: VTSMX) at one of the best, if not the best, mutual fund companies in the world (Vanguard) for one of the absolute best prices available to investors (a dirt cheap expense ratio)!!! Remember my one request of you, please do this now for yourself (don’t wait until five years from now). In an effort to keep this extremely high yield, I am outlining the steps in this post and my following post will have the reasons why.
Your Step by Step Guide To Setting Up Your Roth IRA:
- Go to Vanguard.com
- Click “Open An Account”
- Click “Open A New Account”
- Click “Transfer From A Financial Institution” & “Continue.”
- Now set up your account with Vanguard. This will take a couple steps and you will need to fund your account at this time as well as determine the account type: choose the Roth IRA. The money you transfer will be placed in a money market account initially. This takes a couple of days to process. Next is where the magic happens!
- Once your account is opened & funded, you are ready to Roth, I mean ready to Rock…
- Now, on your new account homepage click the Menu icon at the top left.
- Click “My Accounts”
- Click “Buy & Sell”
- Click “Buy Vanguard Funds”
- Click “Add Another Vanguard Mutual Fund”
- In the dialogue box enter “VTSMX” and click “Continue.” See my second post as to why I chose this one for myself.
- Fund your new Roth by entering in your amount in the dialogue box and clicking “Continue.”
Now Go Read!!!
There really is no way around this. Read, read, read and read some more! You have to read about these topics now. You can’t just trust me on this one, unfortunately. I mean, I guess you can, but if you are like me you need the answers yourself or months later you are likely to think that the grass is greener. Without the knowledge of these topics, you are never going to know what is good or bad in terms of investments and that WILL set you up to fail.
You need to start learning now. Keep your eyes on the look out, my post “What Is A Roth IRA” is coming out soon. In that post I will outline why I set you up the way I did and why I set up my own Roth IRA the same way!
Have You Started Yet?
Starting early in investing is a surefire way to developing passive income (i.e. money that makes you money while you do nothing). Passive income coupled with compound interest is an absolute true recipe for success in your financial journey, but it takes years, so start early.
Albert Einstein considered compound interest the 8th wonder of the world. He said of it, “He who understands it, earns it … he who doesn’t … pays it.”