What is ROTH IRA?

Like a brokerage account, you can invest in stocks, bonds, and funds. However, it's specifically designed for retirement savings.

Why should you open ROTH IRA?

Here are the top benefits of ROTH IRA.

• Tax-Free Growth & Withdrawals:

  • The primary benefit is the potential for tax-free growth and withdrawals.

  • Contributions and earnings grow tax-free within the account.

  • If you meet the eligibility requirements (age 59 1/2 and the account has been open for at least five years), you can withdraw your contributions and earnings tax-free in retirement.

• Potential for Higher Tax Bracket in Retirement:

  • If you expect to be in a higher tax bracket in retirement, withdrawing funds tax-free from a Roth IRA can result in substantial tax savings.

• Flexibility and Control:

  • You have more control over when and how you withdraw funds from a Roth IRA.

  • There are no required minimum distributions (RMDs), unlike Traditional IRAs.

Visualization Created for Tom: Tom is 24 years old and started working . If Tom invest just $7,000/year to ROTH IRA. How much money Tom will have when he turns 60?

With 11.03% return, Tom would have close to $2.9 million and with 14.56% return it will be close to $7.3 million dollars when Tom will be celebrating his 60th birthday.

The above table is the projection of the balance by the age considering different lifetime return percentage of four (4) Fidelity Funds which are in existence for more than 30 years.

Thank you and keep building your legacy through Generational Wealth! Take care and don't forget to enjoy the journey and take care of your health.

Note : Please note that the calculations are estimates based on certain assumptions, such as variable annual returns. This blog post is intended to illustrate the potential long-term benefits of consistent saving and investing, not to provide specific financial advice. The information presented on this blog, including any visualizations or projections based on average historical data, should not be considered financial advice. Investing involves inherent risks, and the value of investments can fluctuate significantly.

Call To Action : Open a ROTH IRA NOW!