Roth IRAs are really easy to setup, there are a few things that are important to square away prior to opening and funding your Roth IRA. Make sure you have a liquid emergency fund (in a bank account etc.).

Why do I recommend this? Because I live and die by the belief  “once money goes into a retirement account it never comes out until I am using it at retirement age.” Once you put money into any of your retirement accounts including your Roth IRA forget about it, it is gone you cannot spend it no matter what.

Most mutual funds offer a Roth IRA as an option and you can find out specifics by visiting their website.  Some important things to verify before opening a Roth IRA account:

1. What is the minimum investment amount
2. What are the fees associated with such an account and how frequent are they(each fund will be slightly different).  There are some no fee IRAs but sometimes it is worth paying management fees for higher quality, better respected IRA fund families.
3. Can I make monthly(or quarterly etc.) contributions.
4. Is the company reputable?
5. If I have a questions is there someone I can call and do they care about me as an individual

Ok, well #5 isn’t 100% necessary but sometimes it is nice to know you can call with a question and someone will take the time to explain in detail(and actually know what they are talking about) to help you out.

Two mutual fund families I recommend for an IRA is Vanguard and Fidelity.  Both of these companies have been around for years and are well respected in the financial community.  Fidelity has no fee IRAs but require a $2,500 minimum. Vanguard also has a no cost IRA, but they only require a $1,000 minimum investment.

The Roth IRA company you choose will have a form to complete on their website, and will provide step by step directions.  They will have you print the form and start completing it, they usually ask for your normal personal information(name, address, phone number, social security number), bank account information (for transfers), and beneficiaries (usually a spouse, child or parent).

Once you complete the application mail it to the company at the address provided, with a personal check with the opening deposit(they will give you the minimum deposit amount) and once the account is open you should receive a confirmation statement and begin receiving quarterly statements going over your current balance, summarizing any dividends or capital gains.

As always if you have any questions please do not hesitate to ask them below.