IRA Rules

Archive for April, 2010

Question: I just graduated college and started a real full-time paying job. I now want to invest … HELP!?

I have been trying to learn as much as possible about everything from 401K’s to IRA’s to Stocks and Bonds … but it still all confuses me. If anyone can give me any advice, tips or pointers I would really appreciate it. I have not ruled out the idea of using a financial organization such as Fidelity or Charles Schwab. I just do not know what the next step is and the best option is for someone just out of college making entry level position salary. Any advice is good. Thanks!

Answer: Your best bet is to invest 6% into your 401K account immediately and througout your working career. Your company will match up to 6%, so why not get free money! As you get older, increase to 8% and this will accelerate your money’s growth. Typically, one who invests in 401K early, and works till 62, will have a 401 K account worth millions! You can also purchase some stock for you portfolio, however, you will need to do some research into what to buy so you don’t get burnt. I use Scottrade, and you can start an account with $800.00. Happy investing!

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