Are You the Perfect Candidate for a Roth IRA?
Life gets busy, and investment advice can sound like buzzing in your ears after a while. That's especially true if you're starting out and learning the ropes. At some point, terms like asset allocation, capital expenditure, and depreciation give you a headache. It's a lot to take in.Here, we're diving into Roth IRAs, a retirement plan that can easily be confused with traditional retirement accounts. Specifically, we're identifying the perfect candidate for Roth IRAs and how they might benefit from the features associated with a Roth. If any of the following three situations apply to you, a Roth IRA may be a perfect fit for your portfolio.Why a Roth IRA makes sense: With a pre-tax retirement plan like a traditional IRA or 401(k), you don't pay taxes on money contributed or earned until you withdraw it. A Roth IRA is different. Taxes are due on the funds now, but as long as you've had the Roth IRA for over five years and are over 59½, no taxes will be due when the money is withdrawn. Continue reading
Life gets busy, and investment advice can sound like buzzing in your ears after a while. That's especially true if you're starting out and learning the ropes. At some point, terms like asset allocation, capital expenditure, and depreciation give you a headache. It's a lot to take in.
Here, we're diving into Roth IRAs, a retirement plan that can easily be confused with traditional retirement accounts. Specifically, we're identifying the perfect candidate for Roth IRAs and how they might benefit from the features associated with a Roth. If any of the following three situations apply to you, a Roth IRA may be a perfect fit for your portfolio.
Why a Roth IRA makes sense: With a pre-tax retirement plan like a traditional IRA or 401(k), you don't pay taxes on money contributed or earned until you withdraw it. A Roth IRA is different. Taxes are due on the funds now, but as long as you've had the Roth IRA for over five years and are over 59½, no taxes will be due when the money is withdrawn.
