When it comes to your retirement, there are a few things you can't control, such as inflation, Social Security and Medicare laws, and tax rates. But investing for retirement now is in your control.
We can help you pursue your retirement goals. After you get your IRA set up with Robinhood, you can get a one-time recommended portfolio by answering a few questions, or you can pick your own stocks and ETFs.
To get started investing for retirement, you can open a Robinhood traditional IRA, a Roth IRA, or both in the app or on the web. For more details, check out IRA overview.
Retirement recommendations
Retirement recommendations
After you’ve opened your Robinhood IRA, you should be able to access a one-time custom recommended portfolio in Retirement → Find investments. For more details, check out Retirement recommendations.
Similar to a non-retirement account, you can invest in stocks and ETFs within a Robinhood IRA. However, you can’t invest in crypto at this time with an IRA account.
Just like with your Robinhood non-retirement account, you can set up recurring investments for stocks or ETFs within your Robinhood IRA accounts. About recurring investments has more details. To set up retirement recurring investments:
- In Retirement, select the applicable IRA account
- Select a stock or ETF you want to set up as a recurring investment
- Select Trade → Buy, and then enter the amount you want to buy
- Open Dollars or Shares for order type options (top right), and in Conditional Orders, select Recurring investment
- Choose the frequency (every market day, every week, every 2 weeks, or every month)
- Choose a payment method
- You can also select a linked bank account as a Backup payment to cover recurring investments. If your backup payment fails, we’ll automatically skip the order. Investments using external accounts count toward your annual contribution limit.
- Review the order, and then submit or view the details if you need to change anything before submitting
You can also choose to View order history, Edit investment, Pause investment, or End investment at any time.
Keep in mind
All IRA contributions count toward your annual limit. If you made contributions to another external IRA, you’ll want to factor in those amounts when contributing to your Robinhood IRA.
You can see portfolio value for your IRA in the Robinhood app or on the web by selecting Retirement → Menu (3 bars) or Settings (gear) → Investing. This shows the total value of all the holdings in your IRA, including:
- Stocks & ETFs is the amount of money you currently have invested
- Brokerage Cash or Buying Power is the amount of money you have available to purchase new assets
- Instant Deposits Health describes if you’re in good standing, your limit amount, any pending deposits, and what’s available for investing
When considering whether to buy or sell an asset in your portfolio, you can see how much buying power is available under Review Order within a stock or ETF’s detail page.
Keep in mind
Your buying power can be affected by settlement timing, which is the time it takes stocks or cash to reach their new destination after a transaction is executed. Also note that banking holidays can affect settlement times.
Just like you can with your non-retirement account, you can enable dividend reinvestment for your Robinhood IRA accounts. When enabled, cash dividend payments are automatically reinvested back into the underlying stock or ETF. You can enable dividend reinvestment at any time in the app:
- Select Retirement → Menu (3 bars) or Settings (gear)
- In the Dividend Reinvestment section, select Edit Dividend Reinvestment
- Toggle the switch On or Off
- After you enable dividend reinvestment, you’ll see a list of your investments that are eligible for dividend reinvestment. You can choose which investments you’d like to reinvest cash dividends for by selecting the circle or checkmark.
If you have agreed to Stock Lending during the IRA opening process, when possible, Robinhood will lend out your shares to earn some interest, and then will pay you some interest income in return. You can disable or enable it again at any time:
- Select Retirement → Menu (3 bars) or Settings (gear)
- In the Stock Lending section, select Turn Off or On Stock Lending
- Toggle the switch Off or On
Investors should consider the investment objectives and unique risk profile of any Exchange Traded Product (ETP), including any Exchange-Traded Fund (ETF) and any Exchange-Traded Notes (ETNs), carefully before investing. A prospectus contains this and other information about the ETP and should be read carefully before investing. You can access an ETF’s details page for a prospectus.
All investments involve risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing.
Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax.
Contents provided are for informational purposes only and do not constitute tax or investment advice. For specific questions, you should consult a tax professional. Robinhood does not provide tax advice. Links to third party sites are being provided for informational purposes only.
Recurring investments don’t ensure a profit or guarantee against loss. Not all securities on Robinhood are eligible for recurring investments. Recurring investments may result in a purchase of fractional shares, which are illiquid outside of Robinhood and not transferable.
Stock lending involves risks and may not be appropriate for all accounts. Stock lending is not appropriate for all customers. Stock Lending income depends on feature eligibility and can vary based on which stocks are loaned out. Stock Lending income is not guaranteed and stocks must be matched to a borrower in order to earn Stock Lending income. For risks and more information about Stock Lending, please review the Fully Paid Securities Lending Risk Disclosure Statement and the Fully-Paid Master Securities Lending Agreement.
Investors should consider the investment objectives and unique risk profile of any Exchange Traded Product (ETP), including any Exchange-Traded Fund (ETF) and any Exchange-Traded Notes (ETNs), carefully before investing. A prospectus contains this and other information about the ETP and should be read carefully before investing. You can access an ETF’s details page for a prospectus.
The Robinhood IRA is available to any of our U.S. customers with a Robinhood investing account in good standing. Note, if you have a B-Notice, you won’t be able to open an IRA until your account restrictions are lifted.
Securities trading is offered through Robinhood Financial LLC, a registered broker-dealer and Member SIPC, and a subsidiary of Robinhood Markets, Inc. (Robinhood).
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FAQs
If you're near or in retirement, bonds, annuities, and income-producing equities can offer additional retirement income beyond Social Security, a pension, savings and other investments. A financial professional can help you determine the most appropriate retirement income strategy for your circ*mstances.
How much should I have invested for retirement by age? ›
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary.
What is the average return on retirement investments? ›
Average annual 401(k) return: 9.7%
Many variables determine a 401(k)'s return, including the investments you choose, stock market performance and 401(k) fees.
How much of your income should you invest for retirement? ›
There is a general rule of thumb: When saving for retirement, most financial experts recommend an annual retirement savings goal of 10% to 15% of your pre-tax income.
What is the $1000 a month rule for retirement? ›
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
Is $100 000 good for retirement? ›
There are a lot of ifs involved in just being 'OK' at that savings level, too. The new line going around that people are happy with a $100,000 retirement is a statistical myth just as sketchy as the perfect $1 million retirement — or the $1.46 million retirement, given inflation.
Can I retire at 62 with $400,000 in 401k? ›
You can retire a little early on $400,000, but it won't be easy. If you have the option of working and saving for a few more years, it will give you a significantly more comfortable retirement.
Can I retire at 60 with 500k? ›
Yes, it is possible to retire comfortably on $500k. This amount allows for an annual withdrawal of $30,000 and below from the age of 60 to 85, covering 25 years. If $20,000 a year, or $1,667 a month, meets your lifestyle needs, then $500k is enough for your retirement.
How long will $1 million last in retirement? ›
For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years. Of course, the 4% rule isn't perfect.
How long will $500,000 last in retirement? ›
Retiring with $500,000 could sustain you for about 30 years if you follow the 4% withdrawal rule, which allows you to use approximately $20,000 per year. However, retiring at a younger age will likely reduce the amount you receive from Social Security benefits.
As of June, there were roughly 497,000 so-called retirement-created millionaires in the U.S., according to the wealth management firm, which analyzed balances across 26,000 of its customers' accounts. Nearly 399,000 Americans also have a least $1 million in an individual retirement account.
What is a good monthly retirement income? ›
The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans. Some valuable perspective can be found in the 2022 US Census Bureau's median income for couples 65 and over: $76,490 annually or about $6,374 monthly.
How much money do I need to invest to make $3,000 a month? ›
If the average dividend yield of your portfolio is 4%, you'd need a substantial investment to generate $3,000 per month. To be precise, you'd need an investment of $900,000. This is calculated as follows: $3,000 X 12 months = $36,000 per year.
How much do I need to retire if my house is paid off? ›
One rule of thumb is that you'll need 70% of your pre-retirement yearly salary to live comfortably. That might be enough if you've paid off your mortgage and are in excellent health when you kiss the office good-bye.
Where is the best place to put money for retirement? ›
A 401(k) plan is one of the best ways to save for retirement, and if you can get bonus “match” money from your employer, you can save even more quickly. A 401(k) plan is one of the best ways to save for retirement, and if you can get bonus “match” money from your employer, you can save even more quickly.
What is the ideal amount of money to retire with? ›
By age 40, you should have accumulated three times your current income for retirement. By retirement age, it should be 10 to 12 times your income at that time to be reasonably confident that you'll have enough funds. Seamless transition — roughly 80% of your pre-retirement income.
What is the best way to save money for retirement? ›
10 tips to help you boost your retirement savings — whatever your age
- Focus on starting today. ...
- Contribute to your 401(k) account. ...
- Meet your employer's match. ...
- Open an IRA. ...
- Take advantage of catch-up contributions if you're age 50 or older. ...
- Automate your savings. ...
- Rein in spending. ...
- Set a goal.
Even with these other sources, saving $100 per month likely won't be enough to cover all of your retirement expenses. It's a start, but check at least annually to see if you can afford to bump up your contributions.
