Ellie is a college student. Ellie is a smart college student. Ellie writes in to ask about what she can do while she’s in college to start saving. She’s definitely the Hermoine of her friend group.
In today’s Andrew Answers, we talk about how she can save for retirement with an IRA. An IRA is an Individual Retirement Account and can allow you to save up to $5,500 per year. The most popular is the ROTH (post-tax) IRA since most folks get this outside of payroll deductions at work. You can get one just about anywhere (like your local bank). BUYER BEWARE: they may be offered as free, but the investment fees can be high. When shopping for the right IRA, be sure to check on the cost of the investments. Luckily, The Online 401(k) offers the Saver(k) which comes with a low administrative cost and only .25% investment fees. If you don’t have a way to save at work, be like Ellie and start looking into IRAs today!
Got a question about your own retirement? Comment below and your question can be answered on the next Andrew Answers!