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I'm currently torn about starting a Roth IRA. I feel like I'm being pulled between two Foolish things, the Roth and a stable e-fund. I am currently investing a good bit of my salary into my 401k (about 10 percent) and would like to start up a Roth so I would have an alternate source of retirement income and more control over it. But unfortunately I'm not sure I have the ready cash to do so. Most of the index funds I'd be interested in investing in have a $3,000 minimum, and to put that much into the Roth now would leave me with only around $2,000 in my emergency fund, which I consider very low.

Have you considered starting your Roth with CDs until you have enough for the desired fund ? There's no shame in a low risk investment and it would get you started. Frankly, because the Roth opportunity is an annual limit, I'd put the first money in a Roth each year to the limit and then go back to the efund. Unless of course, when you are referring to an efund, you're talking about known expenses like car registration & repairs, dr copays, etc.


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