Getting a real job right out of college is a great way to acclimate yourself to the real world. What you need is a 9 to 5 that shows you how the world is supposed to work, but also exposes you to many other ways to make money and get things done. And when you get that first real job, you should open up a Roth IRA and start contributing right away. The earlier you start to contribute to a Roth IRA, the sooner you will start building up a nest egg that will earn compound interest over the ensuing decades and set you up for retirement.
A Roth IRA has tax benefits that can end up paying off in the long term. First off, you have to have an income that is less than $133,000. That is not too hard for recent college graduates. And then, the maximum contribution that you are allowed to make in a given year is $5,500. Once you hit 59 and a half, you can withdraw your funds and go nuts.
So that is the safe way to save for your retirement. But it is pretty boring. And it requires you to be a part of a corporate environment that is designed to take as much value out of your work and bring it back into a shareholder’s pockets. What you might want to try instead is day trading. Day trading can bring you to a place of financial freedom that allows you to get out of the corporate rat race. And you can continue to fund a Roth IRA for as a “safe” investment, as long as you conform to the rules.
Your contributions are not tax deductible, but the good part is, you will not have to pay taxes on the other end. A Roth IRA is a relatively new investment vehicle, created in the late 1990s to spur people to start saving for retirement. Social Security will be a piece of the puzzle for today’s workers, but everyone is going to need more in order to survive. And if you make it to retirement age and are still working, you can continue to contribute to a Roth IRA.
Can you trade within a Roth IRA? That is an excellent question. If you want to take control of your investment assets and make a real run towards high returns, you can make your own traders and invest in individual stocks. Many IRA holders only put their nest eggs into index funds and look for conservative growth, but others might like to diversify or go after stocks that could bring in a higher return.
Now, day trading within a Roth IRA is a whole other story. Most Roth IRAs are set up to prevent people from making multiple trades per day and trading on margin, which makes for a tough day trading setup. But you can day trade as your day job and open up a Roth IRA to save a good amount of money on the side and take advantage of traditional investing.