You wrote
Open a Roth IRA.(where and how?)
Put your money into VFINX (S&P 500 Index Fund)(how much?)
Sign up for automatic checking account small withdrawals(how)
Once you have done the above, then you will have plenty of opportunity to figure out what to do next. YOU DO NOT need further research at this time.(explain)
DO IT NOW! The key is to start saving NOW!
P.S. NO one will disagree with this recommendation
{ 3 comments… read them below or add one }
I will try to help out here. At 16 you are pretty limited as to what you can do. Most financial arrangements are legal contacts. A minor can not make a legal contract. If you can open a money market account at a bank that is an option I think you can do. I doubt they will want a parent of guardian with you, but that would assure you of getting an account opened. Right now, you just need to get your money earning interest. IF you have a job, and EARNED income, the same bank can help you open and IRA. Legally you can only make a tax deferred donation to an IRA with earned money.
FORGET ABOUT ANYTHING involving the stock markets. You cannot own an account at your age, and that is strictly enforced by the brokerage industry. You would have to have an adult as the owner. Not a good idea, if the need were desperate, they might just ‘borrow’ your money. Settle for the bank until you are 18 and a legal adult.
Put your money in the bank, and start educating your self on the many faceted areas of investing. Mutual Funds, Index funds, stocks, bonds, and on and on. Two years is a good window to have for learning.
drop me an email if I can be of help. I don’t sell anything, so don’t worry about getting hustled.
I wish you GOOD FORTUNE$!!!
You repeated my answer. Did you have a question?
If you don’t live in america, pgc Paul’s answer is not relevant for you.
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