I’m a freelancer who wants to start saving for retirement, but I’m not sure how to set up a (Roth) IRA. What are the basics of setting one up?

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Posted by Evan Sachs (MONEY FORUMS: 2, Answers: 3)
Asked on October 30, 2016 2:49 pm
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It is really pretty easy Evan. As a freelancer, you can certainly open up a Roth IRA as well as one of the retirement vehicles for self-employed people if you are looking to defer taxes on your retirement savings.

Back to the Roth IRA, I would recommend simply choosing a mutual fund company, (Vanguard has the lowest management fees), go on their site, and open an account! When you open account, there are two things you need to decide. The first is the type of account (Roth IRA), and the second is how you want that money invested (selecting one or more mutual funds). The easiest thing to use and the fund with the lowest minimum investment is going to be what is called a “target date” fund. This fund keeps a portfolio that is line (in terms of risk) with your age/targeted retirement age. You can always move your investments around as you accumulate more and feel more comfortable doing some research and selecting other funds. It is also easy to set up recurring deposits. Hope that helps!

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: November 12, 2016 1:59 pm