You may have heard of a Roth IRA, but do you know what this type of retirement account is and why you should consider one? Knowing what a Roth IRA is can help you prepare today for your future tomorrow.
What Is a Roth IRA?
A Roth IRA is a retirement savings account that allows investments to grow tax-free, giving it additional power when planning for retirement. Your contributions are not deductible, but all earnings can be withdrawn free of taxes in retirement if certain criteria are met.
These accounts were first created in 1998, offering employers one more option for investment opportunities through their workplace benefits package. Since then, they have continued to be a popular method to set aside money for the future.
How to Get Started with Retirement Savings
If you want to learn more about Roth IRAs or other investment opportunities, contact your local financial advisor in Scottsdale, AZ.
The best place to start is with an advisor who understands the ins and outs of this investment vehicle because some types of accounts encourage aggressive growth. In contrast, others target investors willing to accept moderate gains over time.
The rules regarding IRAs are fairly liberal, and Roth IRAs offer tax benefits over traditional IRA accounts and several unique investing strategies not available in other types of retirement accounts. Don’t let your lack of knowledge about IRAs prevent you from taking advantage of this investment vehicle!
A financial planner can help you create your portfolio and set up an effective financial strategy for the future. Reach out to a financial advisor in Scottsdale, AZ, today to learn more.