Hello! I am a 20 year old college student. I attend Manhattan College on a full ride (women’s basketball). I thankfully will have no debt by the time I graduate & head into the real world. Iv recently opened a Roth IRA, I contribute about 2-300$ per month. Is there a certain number I have to contribute per year in order to benefit in the long run or am I alright & on track by just continuing & doing what I’m currently doing?
Hey Dee Dee! CONGRATULATIONS!! Contributing to a Roth IRA at all this early is awesome!! Currently an individual is capped at $6000 per year in Roth contributions. One word of advice, stay out of debt! When it comes time to get a car, pay for it in cash or pay off the loan when the 0% interest runs out. Check out these posts on Roths and 401k since thats your next step once you graduate!
IRA vs 401(k) and Roth vs traditional
How to prioritize your money (The phases of investing)
Three-Fund Portfolio
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Welcome @deedeedavis1!
There’s no magic number… just the more the better. $200-$300/month at your age is an amazing start. A couple questions:
- Are you working? Do you have file taxes and have “earned income”? (If not, you may not actually be eligible for a Roth IRA, but you could always invest in a regular brokerage account).
- Do you know what your IRA is invested in? (Remember investing in an IRA is a two step process. First contribute the money, second use the money to invest and grow!)
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Thank you so much ! I invest with Betterment (robo investors). I currently have a part time job. However, I am a full time student, (I am exempt) therefore I do not file taxes 