If you’re looking for a step-by-step tutorial on how to invest in a backdoor Roth IRA with Fidelity, look no further! In this video, I’ll break down the process of opening a Roth or backdoor Roth IRA in easy-to-follow steps. I’ll also share why I like investing in Target Date Funds for an easy way to invest. Start planning for your financial future today!

s/o to my financial advisor Todd. Since I get scared about talking about investing, Todd double checked all the info in this video 🙂

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Opening a Roth IRA or a Backdoor Roth IRA can be a smart financial move for many individuals looking to save for retirement. These accounts offer tax advantages that can help you grow your savings over time. If you’re considering opening one of these accounts, here’s a step-by-step guide to help you get started.

1. Understand the differences between a Roth IRA and a Traditional IRA
Before you open a Roth or Backdoor Roth IRA, it’s important to understand the differences between these accounts and a Traditional IRA. With a Roth IRA, you contribute after-tax dollars, and your withdrawals in retirement are tax-free. A Traditional IRA, on the other hand, offers tax-deductible contributions, but your withdrawals in retirement are taxed as ordinary income. The Backdoor Roth IRA is a strategy used by high-income earners to convert a Traditional IRA to a Roth IRA.

2. Check your eligibility
Before you can open a Roth or Backdoor Roth IRA, you need to make sure you meet the eligibility requirements. For a Roth IRA, your income must be below a certain threshold set by the IRS. If you earn above this threshold, you may still be able to contribute to a Backdoor Roth IRA. Be sure to consult with a financial advisor to determine your eligibility.

3. Choose a brokerage firm
Next, you’ll need to choose a brokerage firm to open your Roth or Backdoor Roth IRA. There are many reputable firms to choose from, such as Vanguard, Fidelity, or Charles Schwab. Consider factors like fees, investment options, and customer service when selecting a brokerage firm.

4. Open your account
Once you’ve chosen a brokerage firm, you can open your Roth or Backdoor Roth IRA. This typically involves filling out an application and providing personal information, such as your Social Security number and contact details. You may also need to fund your account with an initial deposit.

5. Make contributions
After you’ve opened your account, you can begin making contributions to your Roth or Backdoor Roth IRA. The annual contribution limit for 2021 is $6,000 ($7,000 if you’re age 50 or older). Be sure to contribute regularly to maximize the tax advantages of these accounts.

6. Invest your contributions
Once you’ve made contributions to your Roth or Backdoor Roth IRA, you’ll need to decide how to invest those funds. Most brokerage firms offer a range of investment options, such as mutual funds, ETFs, or individual stocks. Consider your risk tolerance and investment goals when choosing your investments.

Opening a Roth or Backdoor Roth IRA is a great way to save for retirement while taking advantage of tax benefits. By following these steps and consulting with a financial advisor, you can ensure that you’re on the right track to building a secure financial future.