Not familiar with the Roth?
This is a great type of retirement account that allows your money to grow tax-free for decades. (And how many other accounts can you say that about?)
The only bad thing we can say about a Roth IRA is that some people are unfortunately not eligible to make contributions, as their income exceeds allowable limits.
But if you’re eligible to fund a Roth (check the rules via this link), don’t neglect to do so! You can build up a substantial nest egg thanks to the miraculous tax-free compounding of a Roth IRA.
One last hint: Too many people misunderstand the Roth rules. “Contributions to a Roth IRA can be withdrawn at any time for any reason, tax-free and penalty free,” reminds IRA guru Ed Slott.
That means that if you need your money out, you can always get it. That combination of tax-free growth and penalty-free withdrawals makes the Roth an unbeatable choice for your retirement.
Happy Birthday, Roth!