LogFAQs > #981510774

God_of_6strings posted...

A Roth IRA is the first thing you need to do. The important thing you need to know about it without getting technical at all, is that if you invest the $7,000 in one every year for 30 years, you're guaranteed to have over $1 million at the end of those 30 years. Probably more than $2 million. You don't have to pay taxes or fees to draw money out of them, either. That's why they're quickly replacing 401ks as the default retirement account.

But there is a $7,000 yearly limit that you are allowed to invest in them (federally regulated). After you hit that $7,000 mark each year, if you have more money to invest, you can start looking at ETFs and index funds or invividual stocks.

Just to clarify a point, generally for a Roth you need to keep the money in there for 5 years before you can withdraw it without fees.