Social Security is on its last legs, which makes the concept of finding an alternate means of retirement savings more vital than ever. Thanks to Smart Money, here are the top five reasons why a Roth IRA can be just what the retirement doctor ordered.
Retire with tax-free cash in a Roth IRA
A Roth IRA enables you to put your contributions in after taxes. Because you have already paid taxes, when you withdraw it for retirement you don't have to pay taxes anymore. More money is always helpful. Payday loans are fine in a pinch, however they do not constitute a retirement plan.
You’ve heard the debates over whether Social Security will really continue to exist forever. But let’s assume that it sticks around, and you believe it will cover you post-retirement. The government isn't going to leave you hanging.
No it will not. We hear too many Social Security statements. They generally sound something like this: “You can stop working on the princely sum of $2,000 per month. You may already be a $24,000 winner!”
401k mutual resources do not cut it compared to Roth IRA
Two mutual fund choices are available with a 401k. These can be offered when choosing. That does not give you many choices. Roth IRAs aren't managed as much by other people. They are more for your own management.
Smart Cash points out that Roth IRAs give the retiree a good amount of versatility when it comes to managing their resources. If there is need, one can take out contributions. A Roth IRA can be used for other things too. One example is saving for your children's' education. There are other benefits to being flexible, too. Your financial adviser can help you with this.
Figures seem to be varied
Putting all your eggs in one basket is never a good idea, and this old saying holds true with your next egg. Many make the decision to put cash into a Roth IRA and a 401k. This is to keep themselves from getting in trouble with changing tax rates. It’s a sound strategy that everyone concerned about retirement should discuss with a financial adviser. You need for making sure you do everything you can to keep away from getting short term loans.
Citations
Smart Money
smartonmoney.com/5-reasons-why-you-should-never-open-a-roth-ira/
Smart Money
smartonmoney.com/roth-ira-basics/
Wikipedia
en.wikipedia.org/wiki/Mutual_fund
When former news anchors hawk IRAs
youtube.com/watch?v=Wkvn-Vgg-8o
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