I always knew and heard about a Roth IRA because it’s tax free, is it okay for me to do that one for my parents? My mom was working a full time job and her company abruptly shut down all together because the CEO’s did fraud, and she took out the 401K cause she didn’t get her severance pay due to the way it all went down. She was taxed very heavily when filing on pulling her 401k out. My dad is self employed and makes decent money. Should I just help them make both a robinhood account and open a “ROTH IRA” and have automatic contributions pulled into it and then I show them how to can invest those in the stock market? They are close to their 50s
Edit I also just looked at Charles Schwab it looks good too I’m not familiar with anything other than SoFi and Robinhood they are mobile friendly but interested in Charles Schwab cause I hear it’s better. Thanks
Please help me help my parents plan for their retirement
byu/Helpful_Explorer2857 inpersonalfinance
Posted by Helpful_Explorer2857
3 Comments
I would suggest Charles Schwab over Robinhood as Schwab is a more established company.
Are your parents married? If so, is their combined income less than $236,000?
Do they have money sitting in the bank waiting to invest it? If so, how much? Or is this a situation where you want to make contributions for your still working parents?
Charles Schwab, Fidelity, and Vanguard are places I would look to open an account.
Your dad can open his own 401(k) as he’s self employed. The deferral part is limited by a dollar amount not a percentage