Roth IRA at Charles Schwab: How to Open, Contribute, and Invest (GUIDE)

This video goes over how to open, contribute, and invest in a Roth IRA at Charles Schwab. Many beginner investors don't know how to save for retirement. Roth IRAs are one of the best retirement investment vehicles because they are accessible to almost everyone. Sometimes, beginner investors will open and contribute to a Roth IRA and then do nothing else. This is a huge mistake because you need to know how to INVEST the money that you contribute so that your retirement Roth IRA contributions are exposed to the stock market and grow over time. In this video, we'll go through step-by-step how to open, contribute, and invest in a Roth IRA at Charles Schwab, which is a common investment brokerage similar to Fidelity and Vanguard. This is a beginner guide and tutorial on Roth IRAs at Charles Schwab.
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🕒 TIMESTAMPS 🕒
0:00 Introduction
1:00 What is a Roth IRA?
2:32 Why are Roth IRAs so great?
6:59 Opening a Roth IRA at Charles Schwab
10:41 Contributing to a Roth IRA at Charles Schwab
13:35 Investing in a Roth IRA at Charles Schwab
18:23 Conclusion
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Disclaimer: This video may contain affiliate links, meaning that if you purchase a product I may receive a commission at no additional cost to you. I do not share any resources, products, or services that I do not personally use and believe in. I am not a financial advisor nor a tax professional. The content presented in this video is for entertainment and educational purposes only.

[@AlexRaePersonalFinance]

⭐ UPDATE !!! ⭐ Charles Schwab has changed their UI a bit and some Roth IRA rules have changed. I just posted a new video COMPLETELY UPDATED for 2024 on how to open, contribute to, and invest in a Roth IRA at Charles Schwab. Check it out here: kzbin.info/www/bejne/i2fVp3aBoLeNaq8

[@matthewlee4834]

You're literally a life-saver. My dumb 21-year-old self thought that all you had to do was to put money into a Roth IRA and that it didn't require an additional step of investing. Thank you so much

[@AlexRaePersonalFinance]

Don't worry - many people have made that same mistake! I'm glad you were able to fix it now rather than 20 years down the line though. :)

[@stephenuriarte07]

My dumb 24-year-old self did the same!!

[@densrier]

23-year-old dumb dumb here had the same problem. I'm going to open a Roth IRA soon and I had no idea about the extra investing steps!

[@jennifergoich3768]

My dumb 21- year-old self did the same thing and it has been sitting there doing nothing for montthhhssss

[@HectorHernandez-rj9ed]

Everyone who commented on this reply are smart, because you decided to invest in your 20's. Great move everyone, I've just started at 39 years old and playing catch-up so don't feel so bad.

[@madfox995]

This was the most straight forward video on Roth IRA's that I've seen so far. I wish I could like it more than once. Great job!

[@AlexRaePersonalFinance]

Thank you so much, that's so kind of you! :)

[@davelacroix1318]

This was by far one of the clearest and most concise video I have personally seen on Roth IRAs!

[@jessicakolesar1]

THANK YOU for being the only one to actually explain this process step by step after I watched so many other different videos. I appreciate it and will keep watching you!

[@matthewhannan3958]

Loved the on-screen step by step instructions. Thank you!

[@austinjuarez]

This video has been the best video I have seen on this topic. Thank you!

[@BrockLeonard]

At 25 years old, just opened one of these up. This video was a great help! Just subscribed. Can’t wait to learn more from you! 😄

[@CS-pu4ti]

I opened a Roth & wire transferred the amount to fund my Roth, and called CS customer service to get help because I couldn’t figure out how to invest the money in my Roth. They were super nice, but it was not easy for me to understand what they told me; this is exactly what I needed to know. You described it so well! Thank you so very much! 🙏🏽

[@valeriev4267]

Thanks so much! Out of the many videos I have watched, this by far has helped me out the most! Definitely liked and subbed!

[@AmanJakkani]

New sub here! I really liked how you explained Roth IRA's :)

[@peteskeet9443]

So helpful. There I am contributing for 2 years and not knowing I have to set up investments. Thank you!

[@leanwats1103]

I love this video, straight forward and to the point, you now have a new subscriber 🔥🔥🔥🔥

[@vmagal1]

Thank you!!! I opened up a Schwab Roth but had no idea where to start, they don't walk you through any next steps. This was incredibly helpful!

[@mirandablack6745]

I have had money sitting in my charles schwab account for a couple of years because i was so overwhelmed and this made it so easy to understand. thank you thank you thank you!

[@esmeraldarojas3877]

This is exactly what I was looking for. Thank you!!!

[@AlexRaePersonalFinance]

I'm so glad it was helpful! Thank you for watching. :)

[@911heroesandme]

This video was great. Thank you!!

[@bravergirl]

YOU ARE SO HELPFUL!! I forgot to invest the money. Appreciate this so much!

[@imaeyen-effiong]

I've been looking for this EXACT video. So helpful thank you so much for breaking it down for those of us who are completely new to this!!

[@WhoDoesntHateMiley]

Great video, thank you so much!! I wish everyone was as straightforward and helpful as you!

[@AlexRaePersonalFinance]

Thank you so much - you're too kind! 😊

[@Mzjillion]

THANK YOU SO MUCH!! The only video I found that broke this down step-by-step. New subbie for sure

[@PattyAnnee]

This was SUPER helpful! Thank you!

[@user-yw7tq6uf9i]

It’s easy when an app has all that in one. Very informative video.

[@TheWeallstandup]

Alex, thank you for the easy to follow along to guide. I just opened my Roth IRA and High Yield Checking through Schwab. It was very informative.

[@wolfgangi]

Great video! The UI on Charles Schwab is pretty bad tbh thank you for showing the step by steps.

[@616Octavio]

Thank you so much I just start doing it !

[@SomsaiArts]

Finally! Someone showing how to do it step by step. This was very educational. Tysm!

[@rockinstonesjewelry]

Wow thank you this was so helpful and easy to understand!!!!

[@madisonm9903]

FINALLY! A video with the information I actually need!!! Thank you!

[@AlexRaePersonalFinance]

Aw thank you so much! I'm so glad you found it helpful!! :)

[@morhogeg]

Wow excellent video! this is exactly what I was looking for!! I just liked and subscribed to your channel. Thank you so much

[@jordancrow4266]

This was very helpful. I personally went into two separate Charles Schwab offices looking for help and know one was able to offer the level of assistance Alex provided in this video.

[@EdisonCPP2]

The main reason I wanted to watch this video was to understand the tax section after choosing how how much money to transfer into the account, either that wasn't in the previous version of the website or it was skipped. If you haven't already, it may be a good idea to update with a newer video as the site has changed a little since this recording. Great quality video, thanks!

[@123meyca]

Thank god, 3 years later and this is sooo helpful! Im going to check out your new one now.

[@sanov6219]

clear and concise thank you!!

[@siu-yee]

Awesome video! Great breakdown.

[@Kindnesslove]

Awesome and to the point! Thank you!

[@yqube]

Thank you for your clear explanations! I have a beginner question--for example, if your balance grows, do you buy more shares to maintain the percentages of each fund?

[@Zadok8611]

Awesome video! It is very helpful to not only go over the concepts, but also the nuts and bolts of making the investments.

[@JayJay-pj1nu]

Subscribed! Love this!

[@josephgonzalez561]

Me and you opened this together ,thank you so much

[@roborob819]

Thanks for making it easy to navigate the Schwab website!

[@steven.devstart]

Thank you so much, you truly make a difference in peoples lives, thank you thank you

[@robertdelpino504]

Hello wow first of all only 3 k subscribers. I started thinking about roth ira few weeks ago after some research I found your video amazing video so easy to understand and so much value. Thanks I am a subscribers now .

[@MaseratiSparks]

Best and most simplistic video for Roth IRA I have seen. I have decided to go with Charles Schwab

[@Lisa-go9ix]

Alex, I opened an account with Charles Schwab and had no clue how to invest so I waited to fund it. Watching two of your videos has given me the knowledge & confidence to proceed forward. I have now funded my account and will now make my investments. Thank you for explaining this information where I can easily understand. Your videos are awesome, I am so appreciative!

[@allgood324724]

Thank you so much for this !💗

[@marcjr3]

Thank you so much for this educational video.

[@SophieSweetandSour]

So helpful, loved this video. What comes next? As a novice, I'm wondering, what should I do next? I hope there's a follow up video!

[@joycetheis6302]

You are so right Alex - taking ACTION on the 2nd step vital! Human nature is to go 1/2 way, but that would be like filling the car up with gas and then parking it and going nowhere. Great step-by-step demonstration in this video!!!

[@AlexRaePersonalFinance]

Agree completely - thanks for watching!

[@LivvInspired]

This video was SO extremely helpful thank you!

[@kunalsinha3362]

Excellent job. Keep up the good work. You explained everything really well.

[@ConnieBTV]

this video did help I followed along and got it done!

[@ramu992]

Thankyou so much alex, i'm preparing for a tax exam, being an international student i didn't understand how the IRA's work, but now i do thanks to your video, great walkthrough and explaination. you are very beautiful btw : )

[@jordan23ww]

Thank you so much! This was perfect! I appreciate all the info and the level of detail you put into explaining everything!

[@shivanidurga]

Thank you for this video! It was so clear and easy because of this. :)

[@ronnieross711]

SO HELPFUL!! Thank you!

[@tferuh]

Awesome video! Helped me a lot since I am new to the scene. Thanks a million...

[@howtocurealonelyheart]

this was super helpful I feel like I can understand the concepts of investing but not the actual Schwab website!!

[@JanHayastanMusic]

Wow, you are amazing!! Thank you! Exactly what i needed!

[@rosebailey232]

super easy to follow along!

[@AlexRaePersonalFinance]

Thank you, I'm so glad you found it helpful! :)

[@purplecarrot8982]

very helpful! thank you for showing step by step =] be well

[@nckmartinez]

This was extremely helpful!! Thank you so much :)

[@elizabethlittle2492]

SUPER HELPFUL! I had transferred money into my Roth account, but didn’t finish all the way w/investing. Thank you so much.

[@Asmait42]

Thank for making this video! It was very helpful!!!! Feel comfortable opening an account now, answered all my initial questions!

[@ChrisSlack]

I’ve referred to this video a few times already setting up Roth IRA’s for my wife and myself. Thank you!

[@furiogiunta556]

Excellent video, very helpful, thank you!

[@TNFVLOGS]

I just turned 26 and I’m glad I watched your video because like many others I was just going to let the money sit in the account

[@michaelcardoza9371]

Very good video. I already had a Charles Schwab account and am over 50. Setting up the Roth IRA was very easy to do. Thanks

[@ModernChristianChick]

Outstanding video. Thank you!

[@abiperl3698]

Thank you! So helpful!!!

[@Youtube207user]

Thank you for the video!

[@fabiolacarsot4771]

Very helpful and well explained. thank you.

[@MyPrivateTimeCapsule]

This is the best and most educational video of Roth IRA I've seen so far. Thanks for sharing your knowledge.

[@AnirtakShenwoi]

THANK YOU SO MUCH! I have a Roth account that wasn't doing anything, and no one ever told me I need to invest it. You've really helped me today.

[@5StarHobo]

Such a great video!!! Thank you so much!

[@meganwhitehead9840]

This was awesome - I appreciate that you go into detail and explain things well without talking down to the viewer.

[@AlexRaePersonalFinance]

Aw thank you - this video has had a lot of great feedback and I'm so glad people have found it helpful! Please let me know if there's any other topic you'd like for me to cover. :) I'm planning on making a video describing the differences between ETFs, index funds, and mutual funds soon.

[@meganwhitehead9840]

@@AlexRaePersonalFinance that's great - one topic that may seem easy at face value, but challenging for beginners: changing brokerages. I am in the process of changing from an actively manages IRA with one company and changing to Schwab. Maybe just changing ships in investing/accounts may be helpful down the road?

[@cleohernandez9800]

Thank you so much this information helped us alot

[@Jose-me7yv]

Thank you very much! Exactly what I needed !

[@AlexRaePersonalFinance]

So glad it helped, thanks for watching!

[@tsumm2848]

Great info. Very insightful!! Thank you!!

[@Stu_Pedazzo]

SO helpful! Thank you 🙏 😊

[@arianeong]

wow!! This was easy to understand

[@Joanna-wd4kg]

Thanks, this was helpful!

[@paolaaguirre2467]

Great video! Thank you so much ;)

[@milkshakemaker]

Great video, thank you!

[@josephgonzalez561]

You are my new person🎉

[@MomoHitsujiOwO]

This was so informative! I just opened an account yesterday and contributed but didn’t know about the last step! Thank you!!! 😊

[@Islena617]

Thank you so much for the great video,

[@tregabriel8274]

Exactly what I needed. Liked + subscribed and looking forward to learning more

[@AlexRaePersonalFinance]

Thank you so much! Glad it was helpful. :)

[@ericatekonchuk2700]

This was so helpful! I opened a Roth IRA with Schwab and had no idea where to start. Thank you!

[@AlexRaePersonalFinance]

Glad it was helpful, thanks for watching!

[@alexperoff-investingessent8367]

It's been a while. Great video, I actually didn't know that you could withdraw contributions from your roth IRA at anytime, I need to figure out how to do that, I'm interesting in the early retirement conversion ladder. Like-26

[@retrogoon7182]

Killer video thank you so much !

[@CaseyBurnsInvesting]

You look great today Alex. Love the new set.

[@AlexRaePersonalFinance]

Thank you! I took a short break from uploading and acquired many more plants during that time, haha. Glad you enjoyed!

[@ChristianXProper]

Thanks for this!

[@mnmm1]

I trust her because she has lots of healthy plants. That takes some knowledge, commitment and the ability to nurture something and help it grow. Kinda like an account over time 🙂 Thank you for the clear, helpful video.

[@DapperDividends]

Solid information. Roth is incredible, especially for young people just starting out.... never pay taxes on those capital gains or dividends. Very powerful as well about no penalty on the withdrawals. Hopefully though that’ll be left in as long as possible for the full compounding effect.

[@AlexRaePersonalFinance]

Definitely! Roth IRA contributions should only be treated as a mega-emergency fund. It's just a nice perk that makes me favor them over Traditional IRAs. Thanks so much for watching!

[@TreasureHuntingSWPA412]

Very helpful video for a newbie like me.

[@joshuajones3860]

Thanks a lot! This video was so easy to understand. Now I am just waiting for my transfer to go through so that I can make my contribution.

[@AlexRaePersonalFinance]

Thanks for watching!

[@CerebralTombstone]

So grateful that I clicked on this! I recently opened up a ROTH IRA and felt like I wasn’t doing something right. Turns out that I forgot to invest. Subscribed!

[@AlexRaePersonalFinance]

I'm so glad you found it helpful! You're definitely not alone - LOTS of people make that same mistake. I wish they taught this stuff in school!

[@VirgoGirlie301]

TFS. This is exactly what I was hoping to gain from the video. Now I know how to invest in a Roth IRA. Thanks Again!

[@rachelrachel8504]

I second those sentiments! I’ve been looking for a video that actually walked me through what to do on the computer, and I stumbled on this one 🥳

[@AlexRaePersonalFinance]

Thank you for the kind words! Just so you know, this video is a little out of date since Schwab changed their UI. I released a new version of this video 2 months ago that you might find more useful: kzbin.info/www/bejne/i2fVp3aBoLeNaq8

[@rachelrachel8504]

@@AlexRaePersonalFinance Thank you🙏🏾

[@johnd0ugh]

Thanks for creating this video you made it so simple to understand. ⭐️⭐️⭐️⭐️⭐️

[@AlexRaePersonalFinance]

Thank you!! :)