I'd say "yes" on the IRA, and make it a Roth IRA so the withdrawals are tax free (in retirement). Also, because he's paying income tax on the contributions, the rules for a Roth give you the option of withdrawing the contributions with no penalty or additional taxes if needed. Best of both worlds.
Use Vanguard, they are the least expensive for index funds. Get the total stock market index fund and start putting a couple hundred dollars a month in to it. Max Dillon Charleston SC Dec 31, 2020 3:34:31 PM Allan Streib via Mercedes <mercedes@okiebenz.com>: > For those of you who might have some investment backgroud, does it make > more sense for an 18 year old to open an investment account as an IRA or > as a normal brokerage account? > > My thought is that he's not going to have significant taxable income for > at least another four or five years, and will eventually have more > immediate needs for the funds such as qualifying to buy a house. > > I think an IRA starts to make more sense when you can contribute from > salary witholding and possibly getting employer matching. > > Not trying to get him into active trading at all. Just establishing the > habit of dollar-cost-averaging into an index fund or ETF for the long > term. > > Allan > > _______________________________________ > http://www.okiebenz.com > > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
