So I am a 22 year old beginner who recently just opened an Roth IRA account with Vangaurd and Fidelity since I’m not too sure where else to start with investing. Apparently, Roth IRAs only allow you to contribute around 6k max annually. Does this mean I only can invest 6k into an index fund each year? Does anyone have any idea how this works if I end up saving a lot of money and wanted to put it into an index fund. For example, if I make 25k in savings in the future is there any chance to invest all the 25k into an index fund without limitations/restrictions?
Also, what’s the difference between a traditional IRA and Roth IRA? When would I choose one over the other?
I know index funds are the best way to achieve FIRE so I figured any penny I save could go into an index fund. Any thoughts/advice for me going forward?
Submitted September 02, 2021 at 05:44AM by Ok_Mycologist_8978 https://ift.tt/2WL6IBi
