Everyone is always saying that you should start saving up for your retirement ASAP. By 25 at the latest. Well, I’m 25, and I have researched IRA accounts in the past, but I cannot afford to set aside the minimum amount needed to start an IRA account (I think the ones I was finding were in the hundreds of dollars). So I really want to start saving now, but should I just keep a seperate savings account? I am pretty sure the IRA’s have higher interest benefits, which is why they would be preferable… Thoughts?

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Posted by Julie (MONEY FORUMS: 4, Answers: 2)
Asked on February 9, 2016 9:43 pm
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It’s great that you are thinking about saving for retirement! There are a lot of low minimum deposit IRA products out there, it just takes a while to find them. If you belong to a credit union, see if they have some sort of “easy start” IRA certificate of deposit. The government has just come out with a new product called myRA that is basically an IRA for those have difficulty saving larger amounts. (www.myRA.gov.)

In addition to being a great idea, lower-income earners get a tax credit for retirement contributions through the Saver’s Credit.

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Posted by Kate Horrell (MONEY FORUMS: 0, Answers: 1)
Answered: February 12, 2016 2:52 pm
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Hi Julie,

It’s awesome to just start the habit. An IRA is simply a type of account, and the investments within your account are what have the minimum order requirements. I initially started my IRA at CapitalOne360 (now sharebuilder) because they offered several investment options that had $500 or $1000 minimums, but you can just set cash in the account until it’s accumulated enough.

These days, I don’t really like the Sharebuilder Interface or fee structure, but I know that you can set cash into a Fidelity IRA account until you’ve got enough for some minimum purchase order.

Congratulations on getting your financial future started!

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Posted by Hannah Rounds (MONEY FORUMS: 1, Answers: 54)
Answered: February 11, 2016 8:26 pm
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Just to clarify Julie, IRA’s can be invested in many different things, from mutual funds to CDs. The IRA is not a specific investment, but an investment vehicle that has some tax advantages over straight investments. (Your contributions and the earnings are tax deductible.) In the short term, you could save money in a savings account until you have the minimum to invest in a retirement account. The tax deduction for the contribution to the IRA is made in the year the funds go into the IRA (although you have until April 15 to do this and claim it for the tax year ended the previous December.)

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: February 9, 2016 11:20 pm
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Check out Betterment — either $100 per mo or pay a $3 fee per month to invest a smaller amount.

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Posted by Melanie Lockert (MONEY FORUMS: 0, Answers: 66)
Answered: February 9, 2016 10:48 pm