Open a Roth IRA with a low-cost broker

A Roth IRA lets you invest after-tax dollars that grow tax-free forever. Open one at Fidelity, Vanguard, or Charles Schwab with no minimum balance. Invest in a single target-date fund that automatically adjusts its mix of stocks and bonds as you approach retirement.

Why It Works

Roth IRAs offer the most tax-advantaged growth for young and moderate-income investors. A target-date fund handles all asset allocation and rebalancing automatically — perfect for beginners.

Tips

• 2026 contribution limit is $7,000/year ($8,000 if over 50)
• Income limits apply: check IRS guidelines for Roth IRA eligibility
• You can withdraw contributions (not earnings) at any time without penalty
• Automate monthly contributions to build the habit