- 1). Open a discount brokerage account. You'll need an IRA account to get started. You can do this through any of the discount brokerage companies, which allow you to manage your investments. In most cases, it's free to set up an account---you pay fees only when you make a transaction.
- 2). Link the IRA account with your bank checking account to easily transfer money. On your brokerage account's website, you'll find a link that allows you to link accounts. This is the easiest way to transfer money for investments. You'll need to provide your bank's routing number and checking account number.
- 3). Choose investments for your IRA that are well-diversified. You can purchase individual stocks, but it's safer to choose mutual funds, which are pools of stocks. While there's no guarantee that a company's past performance indicates future success, it's smart to research companies or mutual funds before you make a purchase. If you are expecting to retire within the next few years, select investments that are safer and less volatile than stocks, such as bonds.
- 4). Invest for the long term. You may lose money in the short term, but over the long term the stock market has historically generated positive returns. Try not to get disappointed when you experience losses in your investments. Over time, your money should grow.
- 5). Check your IRA a few times a year. You don't need to be checking on a daily basis, but you want to be sure the investments you've chosen are generating a good return. Check their performance once a quarter. If a stock or mutual fund is consistently under-performing, consider selling it for something else.
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