Hey what’s up everyone I just had a question about starting out I’m 32 with no retirement or anything and I just started working as a car salesman and I’m trying to invest because I’m getting really worried about the future now. I have at least $1,000 to $1500 I was wondering if I should put all of it into a Roth IRA? Or put it into an index fund? Or half and half? I’m so confused at where to s
Hi Anthony! Welcome and glad you are here! First, 32 is not a terrible age to start saving for retirement. Based on your question, it seems like you are a little lost on where to begin. This link and post are very helpful for getting started! Take a look at those and feel free to ask more questions once you see what it recommends.
As for your specific question: I feel like this post will clarify a few things for you. Put your money in a S&P500 index fund within either a Roth IRA or 401K IRA. Please note that the Roth has a $6000 per year contribution limit.
Just to stress two points again. You should check out those posts and others to have a better understanding of how to get started investing. But, again, all is not lost for you, starting now is far better than starting tomorrow!
Hey @Anthony_Rodriguez!
I believe you have a classic misunderstanding common to new investors. You’re confusing the type of account, with what goes IN the account. A Roth IRA is just an empty account (like savings/checking/etc). Once you open a Roth IRA and contribute money, you need to buy something inside of that account. That’s where index funds come in!
So how do you pick between a Roth IRA or an Index fund? You don’t! You DO BOTH. That’s how it works. You open a Roth IRA account, then invest all the money inside of it in index funds.