Open a Roth IRA - How? - Go to www.Schwab.com - Click on open an account - Click on Retirement account - Click on Roth IRA - Follow Steps to open account online
Connect your retirement account with your bank account on your new Schwab profile
Setup automatic transfer from your bank account to your retirement account to at least $100 per month to no more than $500 per month
On the first of every month (setup a reminder on your cell phone), invest in the stock market, using the following “long - term and conservative strategy.” (You can adjust percentages if you want to take a riskier approach) Note: You should adjust the dollar amounts if investing a different amount based on percentages below - 30% in VTI - Total Stock = $150 - 40% in TLT - LT Bonds = $200 - 15% in IEF - Interm. Bonds = $75 - 7.5% in GLD - Gold = $37.5 - 7.5% in DBC - Commodities = $37.5
Continue to do this every month
Beginning on the 13th month, rebalance investment portfolio to adjust percentages back to the original percentages in step № 4
Do NOT sell throughout the year no matter what happens in the company or what you hear in the news. Selling will negatively impact this long-term strategy
If investments go down, continue to buy (at low prices) based on the original percentages
Evaluate strategy every 5 years to determine if you like to adjust percentages to be more conservative. However, this is not necessary unless you are 5 years away from retirement
After 30 years, if you continue to invest at least $ 500 per month, assuming a 10% annual compounded interest, you will have invested a total of $ 180,000, with a net earnings of $ 852,216, with an ending balance of $ 1,032,217.44
Tax Free!