13 Steps to Investing Foolishly, Step 4: Open and Fund Your Accounts

In honor of Worldwide Invest Better Day, we at The Motley Fool are recapping our "13 Steps to Investing Foolishly" — steps you can follow to become a better, more Foolish investor.

In the following video, senior analyst and Foolish retirement pro Robert Brokamp goes through step No. 4: opening and funding your accounts.

Robert's use of Procter & Gamble's Crest toothpaste brand to illustrate the variety of different accounts available to investors is no coincidence. This dividend aristocrat has been a long-time favorite holding for investors shoring up for the long run. Not only has the company raised its dividend for 56 years, but shares have also appreciated more than 13,000% (after reinvesting dividends) over that same period.

Want to know whether you're eligible for all of the tax benefits of an IRA? Here's what you need to know: Whether contributions to a traditional IRA are deductible starts with whether you (or your spouse, if you have one) are covered by a retirement plan at work. It doesn't matter whether you participate in the plan, just whether your boss provides the opportunity.

Then, it comes down to your household adjusted gross income (AGI). Here are the important numbers if you are NOT covered by a retirement plan at work. Here are the numbers if you are covered by a retirement plan at work.

Contributions to a Roth IRA are never deductible, but your income will determine how much you can contribute, including whether you can contribute to a Roth at all. Here are the income limits for 2012.

Click the big green button to join the thousands of people celebrating Worldwide Invest Better Day on Sept. 25!

The article 13 Steps to Investing Foolishly, Step 4: Open and Fund Your Accounts originally appeared on Fool.com.

Robert Brokamp and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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