I am 25, and am wondering at the best retirement fund to set up. How much money should I put into it? At what age will I be able to touch my money?I am considering putting 10K into an index fund (S&P 500) and keeping it there until I turn 60 or so. What about taxes though? I know that an IRA will tax me now rather than later, but does that make it worth it?I have read (not just on this site) that index funds are the best funds there are.Or is any type of fund not such a good idea?If it doesn't automatically, please opt for your reply to be sent to directly into my email...Thank you in advance,Jax4Pres
I know that an IRA will tax me now rather than later, but does that make it worth it?Only a Roth IRA will tax you on the money before you put it in, and allow to be tax free during withdraws. Traditional IRAs give you a tax break up front and charge you income tax on your withdraws later.Also, an IRA of either type will only allow you to put in $2000 per year, unless it is a roll-over from another retirement account.Or is any type of fund not such a good idea?If you want to just "set it, and forget it", then an index fund (or their stock-like cousins SPY for S&P 500, QQQ for NASDAQ) are the easiest way to make sure you "keep up" with the market.
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