Friday, June 18, 2010

A Simple Way to Become Wealthy

Check out this simple advice to investing for retirement from US News & World Report, "A Simple Way to Become Wealthy"

If you are young or don't believe you have enough money to invest, you can open a Roth IRA and invest as little as $25 or $50 each month in a mutual fund. I don't recommend you invest $25 or $50 every month. You should max out your Roth IRA contributions every month. If the maximum contribution allowed for the year is $5000, then divide $5000 by 12, which is about $416.66/month. I highly recommend you setup an pre-authorized checking with your Roth IRA account. Its quite simple and its the best way to make sure you are the first bill to be paid. Most people don't treat themselves as a bill. So they don't create a habit of saving money.

I put away $300/month into my Roth IRA.

To learn more about Roth IRA, check out this article:

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