I am 18 and am very new to investing but trying to get set up. I would like to open a Roth, but as I will be attending law school after undergrad and live in a wealthier area, I’m concerned that I won’t be able to contribute since there’s a good chance within the first few years of working I will make more than the income limit. I understand there is a back door Roth, but congress is working to eliminate this and so that makes me wary. Is it best to open a traditional Ira if I am cautious about the income limit?
I also would like to invest in high dividend yielding ETFs to create a passive income stream over the next few years, but I am not sure if I should prioritize things like VOO (my possible IRA) or dividends like SPYD, SCHD, and VYMI? I was thinking 70% into dividend funds and 30% into a longer term retirement account as I am only 18. Any advice would be appreciated as I am trying to get everything sorted out!
Leave a Reply