Im currently 18 years old and I have $3000. Ive studied trading for about 9 months and become consistent trading with the shitty Robinhood broker (just to test stuff out).
I've thought about opening a Roth IRA since its a great for young people like me who get taxed pretty much nothing when putting money in. The problem is that the money used for the IRA is pretty much never to be touched again, and I could use that to trade.
Should I use the money to trade (with some risk) or split the funds between a Roth IRA and trading account? Or just fully invest into the Roth IRA (safe option)?
use a normal trading account to grow your account a little bit then take some of your profits out ever year to put into a roth IRA account to help with your income tax and trade with two accounts so you'll be set for retirement and have a normal account for your personal spending
roth you can pull the principle back out with no penalty. it only "locks up" your gains. if it's self directed it's not any riskier/safer at all. it's literally a question of do you want to pay taxes or not. you're allowed to not pay on 5500 a year by putting it in a roth. once you reach the 5500 cap, then you start put the rest in a cash account. but if you are under the 5500 cap, it's a no brainer. roth 100%.
Have your personal investments in Roth trade in regular.
Based on your age, I would stick with the trading account and focus on saving up money. Just work and create a plan to save up money. Don't worry about taxes. Don't use retirement accounts for trading but more for long term investments. Realize the Roth IRA has a 5 year rule in order to qualify distributions.. 5 Roth IRA Withdrawal Rules You Need to Know http://www.rothira.com/roth-ira-withdrawal-rules
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