Why you SHOULD have a ROTH IRA

You should have a ROTH IRA account. Why? Lets get into it.

A ROTH IRA is funded with after-tax dollars. Meaning the cash you have in the bank, the net money you receive on your paycheck.. that is what’s being used to fund your account. The beauty is… your money grows TAX-FREE. When you are set to receive this money, no taxes have to be paid. There is some stipulations here. The max that you can fund your ROTH is $6,000 per year, however if you are over 50 years of age, you can fund it up to $7,000 per year. There is an income limit, if you make over $153,000 a year as a single filer, you may not contribute to a ROTH.

There is also many benefits to having a ROTH. You can always convert your 401k to a ROTH or other events. However these are taxable events, but your investments can grow if you are willing to sit and wait and let compound interest work its magic. If you simply buy a S&P500 Index Fund, you can generate returns on average around 8% a year. If these funds can sit and compound for years, depending on the age you start, you can accumulate MILLIONS in your portfolio.

The bottom line is.. YOU NEED A ROTH.

As always, we strive to provide you with information to best set you up for financial success. Please like and share with friends. We believe these are messages that aren’t being talked about enough and that needs to change. Feel free to email us with any questions as we try to help you all!