What is a Roth IRA?

IRA stands for Individual Retirement Account and the last post about a Traditional IRA is HERE.

A Roth IRA has some of the same rules, but the big difference is, the money you put in is ‘After Tax’ and you can take that money out without paying any penalties, and you can also withdraw it, once you retire after the age of 59 1/2, without paying additional taxes on it.

Read what the IRS says about it HERE.

Read what Napkin Finance says about it HERE (and that’s where we get this cute graphic.)

Read what Nerd Wallet says about the pros and cons HERE.

For young people just getting their first job, we highly suggest opening a Roth IRA, because when people start working, they should already start thinking about retirement! Starting early means they can take advantage of the impact of time on investments.

The investment strategy we suggest you use in this Roth IRA is detailed in this post HERE.

Do you have a Roth IRA? Let us know in the comments! And as always, thanks for reading this.

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