Can you start an IRA at 25?

Question

Can you start an IRA at 25?

Answer 1

Yes you can. Yhe question is traditional vs Roth IRA. The difference is the Roth the money is tax free when you withdraw (after age 57and1/2). Also do not overlook a 401k  at work. Good Luck

Answer 2

As long as you have enough income and aren't over 70 1/2, you can open an IRA.  I know people who have opened an IRA at age 16.

Answer 3

You definately can. At 25 years old you could build a very nice nest egg for retirement. Invest 15% of your income toward retirement.:

1st invest in 401k up to company match.

2nd fully fund your IRA (Roth)

3rd go back and add more to 401k until you have reached th 15% mark

BUT!! Only do this if you are completely out of debt except for your mortgage. Your money can do so much more when your not paying interest.

Answer 4

You may start an IRA when you want. As long as you are contributing funda on a yearly basis.

Answer 5

Yes. If you can afford it, get started today. You are young so buy/Invest in stocks while they are cheap. eventually the market will change.  

Answer 6

Yes, you can start anytime as long as you have earned income.

"The maximum for an IRA contribution in years 2006 and 2007 is 100% of earned income or $4,000, whichever is less, for an individual under the age of 50. Individuals aged 50 and older can contribute up to 100% of earned income or $5,000 whichever is less. For 2008, the limits are $5,000 and $6,000 respectively."

http://en.wikipedia.org/wiki/Individual_...

However I would not open an Traditional or "Standard" IRA, I would open a ROTH IRA.

http://en.wikipedia.org/wiki/Roth_IRA

ROTH IRA: Principle may be withdrawn in part or whole (not recommended) after 5 years. 100% of gains are tax free at retirement, 59 1/2.

Consider:

S&P 500 Index for inside the ROTH.

http://en.wikipedia.org/wiki/S&P_500

Dollar Cost Average in the market.

http://en.wikipedia.org/wiki/Dollar_cost...

Answer 7

yes now is a good time. go to ING they have great interest!

Answer 8

Yes.  You personally can start one at age 18.  Your parents can open one when you are younger.

For between Roth and Traditional, it depends on your situation.  If you are the typical 25 yr old, Roth is a better bet AFTER maxing out a 401k's company match.

All and all, find a local analyst/adviser to help you decide what is best.