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Tag: Roth

5 key questions to ask before opening a Roth IRA

5 key questions to ask before opening a Roth IRA

Finance
There is an endless list of tax-advantaged accounts and plans on the market for consumers to choose from, so determining which plan or vehicle provides you with the most freedom and best features can seem, at first, like a daunting task.A good jumping-off point is to start asking yourself basic questions like: "Where will my career take me in 20 or 30 years?" or "How likely is it that I will need access to the funds I'm setting aside for retirement before I actually do retire?"Though these questions seem broad in scope, they can truly help you to narrow your options, and they may point you toward a retirement tool that is rising in popularity but still may be overlooked by many Americans who could benefit from it most. A Roth individual retirement account may be just what is missing from y...
Roth IRAs may be the best thing since sliced bread

Roth IRAs may be the best thing since sliced bread

Finance
If tax rates increase in the future (highly likely based on historical data), or if your tax rate in retirement will be higher than your tax rate now, a Roth IRA could be a banner idea. Investors who expect to have a higher tax rate in retirement have the most to gain with a Roth IRA, because you pay lower taxes on contributions now to avoid higher taxes on withdrawals later.This is particularly true for younger investors. The younger you are, the more earning potential you have and the more chance your income will be higher at retirement. Put another way, the greater the difference between your income now and your income in retirement, the more advantageous a Roth IRA can be.Let's block ads! (Why?) Financial Advisor Hub