We know you're busy, but can't you spare one minute to think about your retirement?
That's what we thought. Start your stopwatches...
0:58: Roth or regular IRA... what's your pleasure?
Your first step is to decide which type is best for you -- a Roth or traditional IRA (Individual Retirement Account). Do you want to save on taxes today (with a deductible traditional IRA) or in retirement (with a tax-free Roth IRA)? No need to strain your brain. Use this calculator to see which one is best for you.
0:44: Find a place to invest your cash
A discount brokerage account is a logical place to house your long-term retirement savings. See this handy comparison guide to check out each of our sponsor broker's IRA products and fees. Two particular things to note as you shop:
- Fees. By law, your broker can charge an annual fee to maintain your IRA, but many don't.
- Trading commissions. Make sure the bulk of your contribution is going toward your retirement nest egg, not to trading commissions.
0:32: Open an account
Setting up an IRA account is usually as easy as downloading the application forms, signing them, and folding them nicely into an envelope with a check to fund your account. You'll receive confirmation of your ability to invest in no time at all.
0:20: Invest
Consider an IRA as the basket that holds your retirement money. You get to decide what goes in that basket. That means deciding which stocks or mutual funds you want to buy. (Hint: If you're new at this or just don't have the time to evaluate individual stocks, you might want to consider an index fund to get started.)
0:07: Dream of the future
Start thinking about how you'll spend those blissful (and flush!) retirement years. Will you have a view of the beach or the mountains from your porch? Will you be gardening or go-carting in your spare time? What froufrou beverage will you serve? And which guest suite will be available for your friends at the Fool the weekend of Aug. 11, 2023?
See how much you can accomplish in one minute?
