Not at a bank. At a brokerage (Etrade, scottrade...any of those).
You should not invest in individual stocks, but rather in index ETFs, or mutual funds.
You must have earned (from a job) at least as much as you want to contribute.
You MUST have it in your head that you are leaving this money alone - - that you will never touch it - - - until you retire. There is almost nothing more stupid than taking money from a tax advantaged retirement account and paying a penalty (a whopping penalty) for doing so.
BTW - "IRA or STOCKS" in your question makes no sense because your IRA money WILL be invested "in stocks". Unless you go with the bank - - which would be a sorry decision.
You may want to double check account minimums for the prospective types of accounts. With just a modest annual amount, your choices may be limited to stocks through Scottrade or a Dividend Investment Program (DRIP) account.
What is purpose of money? Sounds like you should diversify if not sure. Maybe half into individual stocks and half into a Roth IRA if you have earned income. You have flexibility on both to pull out money if you need it. Review the rules for the Roth.
I'm looking to start investing some money for the future. Right now, I am looking to invest $500 annually, but I am not sure which option to go with: open a retirement fund (I'm currently 17) and add the $500 annually, or open a Scottrade account with $500 and invest it in some stocks (SPY, McDonalds, Microsoft, and other companies that I use that are low risk investing).
Any suggestions? I know that opening an IRA retirement fund (say, through my bank [BOA]) would be a safer option, but I'm not sure if the interest rates will make it the smartest investment option right now.
Any and all suggestions will be appreciated.
