Should a 16 yro get totally FREE IRA account at my local bank?

Question

Hi,

I have a stable job and Im 16 I was planning to get a $1000 market account and some $500 CDs. I am a big SAVER I NEVER have to spend my money cause I worked hard for it.

My parents wont let me invest online nor would they let me open accounts at other institutions. Now im stuck at my local bank for now.

I know, I read and took a little dig in finding a little info about IRAs. Its insured by the FDIC up to $250,000 and it can only be open when one is 59 years old and its TAX FREE. Never pay taxs when you open and there is nifty fees to open when one reaches into their IRA prematurely.

1) So, here this brings to my question should I get a totally free IRA account that has no minimum balance at my bank?

2) Why should I get it I might die before I reach age 59?

3) Whats the whole purpose of invidual retirement accounts doesn't it destroy the purpose of 401K's, pensions, social security?

5) SHould I get the totally free IRA account at my local bank and why?

Answer 1

You would be better off with a Roth IRA if you already have saved the money.  Regular IRA is pre-tax and Roth is after tax dollars.

Answer 2

1) get a roth self directed IRA at a brokerage company

2) you can take out the money early sometimes without a penalty...depends on why you want it

3)Every company does not have 401K or pension plans...and social security is in trouble

5)once again........a IRA at a brokerage company.way more flexability...stocks, bonds, cd's m mkts...on and on.and you can do it online..