Home Plate

Only when your insurance, income, and family is secure should you move on to investing and growing your money. You’ll score a big win if you open two accounts with a discount brokerage:

One account is a Roth IRA. It’s designed for long-term retirement savings, so you generally can’t access the earnings early without penalties, but it grows without having to pay taxes. After the age of 59 and a half, you won’t have to pay taxes on withdrawals. Currently, the most you can put into a Roth IRA in any one year is $7,500. (If you withdraw money from a Roth IRA before age 59 1/2, Uncle Sam will tax you 10% on top of your ordinary income tax on the earnings portion.)

The second account is an individual brokerage account which gives you flexibility if you ever want to access your money before retirement (though withdrawals may incur taxes). Should you at any time want to withdraw money for an emergency or large purchase, do it here.

Each month, like clockwork, deposit into these two accounts in equal amounts. Consistency is key. Invest in Exchange Traded Funds (ETFs) that track the S&P 500, and always stay invested for the long term.