The Top 3 Reasons We Love the Roth IRA
Our Own Submission for the Roth IRA Movement
Jeff Rose, a remarkably industrious financial planner, loves Roth IRAs. Now a lot of people have discovered the advantages of a Roth IRA, but not everyone has the motivation, desire or effort to actually start a full-fledged movement around a financial product. Jeff decided to harness the power of social media to try to spread the good word about Roth IRAs.
We've happily jumped on board to offer support however we can. We've created a list of all the bloggers participating and we've been doing what we can to help build some momentum on the topic as well.
Given that, here are the top 3 reasons we love the Roth IRA:
- We have to, it's in our name! This site isn't called "RothIRAsAreTheNewWebvan.com" (a joke only for those old enough to have lived through the first Internet bubble). As it happens though, RothIRA.com recently got new investors, a new team and a new focus and all of that is driven by the potential of the Roth IRA as an incredibly valuable tool that needs to be considered as a part of any portfolio, large or small, starting out or even finsihing up.
- Roth IRAs provide an important choice. Now we're not the kind of people that need 24 choices of jam in the grocery store, but, hey, this is a free country. Sometimes it makes sense to pay taxes up front, sometimes you may want to pay them later. The fact that you can choose what makes the most sense for you and your situation helps you optimize for your situation and minimize your overall tax bill.
- Roth IRAs are an incredibly flexible investment tool. Just look at some of the variety of posts being produced for the Movement. Hey, if you think the U.S. is headed for bankruptcy and insanely higher tax rates, then a Roth IRA gives you a great way to hedge that situation. Maybe you're taking off work for a year to move to Costa Rica. If you don't have any income that year, it might be a good time to rollover some of your other retirement funds. There are so many things that can be done with a Roth IRA.
Important Roth Information
Each year, the IRS updates the rules for IRAs. Here are all the details for 2016: