Monday, March 13, 2006

Today I helped my mom fund the Fidelity IRA account she began opening almost a month ago. We maxed out her 2005 contribution, but since the funds aren't there yet we haven't picked a place to put it. My mom's not so much a hands-on person when it comes to these kind of things, so I think she'll probably go with one of the target retirement date funds.

I've made plans for the money sitting in a Savings & Loan CD. It should be around $4800, so when it matures (February 2007) I think I'll open a Roth IRA at Fidelity and max out my 2006 contribution. Of course, I'll have to first make at least $4500 in 2006 (only earned income can be used to fund a Roth, and last year I only made $4000 (!!)) And I'll try to throw whatever spare cash I can afford into the account for the next few years.

Assuming I retire at age 65, I'll have 44 years of tax-free growth in the Roth. Start early!

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