As a 19 year old, what's the best way to start investing money from my Roth IRA?

I'm 19 and I have a couple thousand dollars in my Roth IRA, though not a cent is invested in anything. From my research, I believe I'd like to invest a large portion of my assets in an account towards Large Cap Equity. What would be the best way to get started doing so? Is there a better way to invest large scale in the stock market?

Investing, IRAs, Stocks, Starting Out
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September 2017

Your research instincts are correct. The best first step for you is a large cap equity index fund. Stay away from individual stocks as you don't have the resources to build out a large portfolio on your own. I would suggest that you open a brokerage account with Charles Schwab. Two reasons. Schwab is a large organization that will be able to offer you varied financial services as you progress in life. They also have a suite of low cost indexed mutual funds that you can trade commission free.

Specifically, you should consider the Schwab Total Stock Market Index with ticker symbol SWTSX. It invests in virtually the entire US stock market with a very low expense ratio of 0.03%. That gives you diversified exposure to the US equity marketplace at a low cost.  Reinvest your dividends and capital gains back in the fund. Keep all the money working for you. 

Good luck and ... glad you started investing early with a Roth IRA.


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