Multiple IRAs

Q Does it make sense to have multiple IRA accounts? — F.W., South Bend, Indiana

A It could. You might have a traditional or Roth IRA through a regular brokerage for investing in individual stocks. Meanwhile, you might open another IRA with a mutual fund company, if it’s the best way for you to invest in a particular fund (some funds are not available through brokerages). Also, if you change jobs, you might roll over money from your 401(k) into a new IRA, so that you can manage that money separately. Multiple accounts are fine, as long as you can keep track of them all. Know that the contribution limit for 2017 (and 2018) is $5,500 ($6,500 for those 50 or older) and that’s all you can contribute in total.

Q I’m a teenager — how should I invest my money? — C.T., Walnut Creek, California

A First of all, keep any money for college out of stocks, as you never know when the market could pull back for a while. Money you’ll need in the short term is best kept in safer places, such as CDs. (You can look up good CD rates at bankrate.com.) For long-term money, though, it’s hard to beat the power of stocks. Teens have lots of time on their side. If you invest $1,000 in a stock index fund, and it earns the market’s historical average annual return of about 10 percent, in 30 years, when you’re perhaps around 44 or 47, it will top $17,000. Add to it over the years and you could retire early as a millionaire! Learn more in “The Motley Fool Investment Guide for Teens,” by David and Tom Gardner with Selena Maranjian (Touchstone, $16).