Benefits of a Roth IRA

Investing in a Roth IRA is a great option for when you are younger in your career. By paying taxes upfront while you’re likely in a lower tax bracket, you’re setting yourself up for tax-free growth on that money for life. This means that when it’s time to enjoy your hard-earned savings later, both your contributions and gains can be withdrawn without any extra tax.

“The Roth IRA is one of our favorite accounts and the reason is: you make contributions into the Roth IRA and you say I’m okay paying the tax on these funds today, but we’re in historically low tax brackets. And when you’re younger in your career, hopefully you’re earning less than you will later in your career so the idea is that your tax bracket and the income that you’re making is only going to increase over time. So, while you’re in a lower tax bracket can we pay the tax today to get the money into the Roth where it can grow tax free for the rest of your life. So when you go to pull funds out of the Roth IRA, not only is that contribution that you made tax free, but so is all that growth.”