Investing in a Roth IRA as a student?

Question

Is it advisable to invest in a Roth IRA as a student?

I am 20 years old and I currently have a full time job, but I don't plan on staying for more than one or two years. I anticipate being a student for the next couple of years. I would like to invest some money towards retirement and I want to make it as difficult as possible to withdraw that money before then.

Answer 1

I'd start it if I was you. I wish my husband and I had started retirement accounts sooner.

Answer 2

The sooner you start an IRA the better.

Answer 3

It will be tough and costly to remove it, but a Roth is a great way to save because it grows tax free.  Buy a stock that pays dividends and reinvest them.

If you think you might need the money in a couple years go through Charles Schwab or another discount broker.

Answer 4

i think this is a good plan.  the Roth option is probably best in the long-term, because you probably have a fairly low tax rate now, as a student.

however, if you want to make it as difficult as possible to take the money out, then a traditional ira would be more effective, as you can withdraw any contributions to a roth, tax- and penalty-free, at any time.

Answer 5

Use a Roth. You don't want to pay a penalty in case you do need this money for an emergency. Just have self-control. Use automatic investment option.