Why the Smart Money Chooses a Roth IRA

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When the article started out by stating that people with "higher IQs invest in Roth IRAs," you know its b.s. and they are trying to convince you get into a Roth IRA. Despite the article, the answer is not that simple. Talk to a CFA, it all depends on your individual financial situation. LOL, and the decision has nothing to do with your IQ. What a load of huey that is. Tell people they are stupid if they do not invest in the product you want them to, what garbage.

Paul of MD 9:31AM October 31, 2012

Amanda of TX: The tax the article is referring to is the income tax withheld from your paycheck. So technically, the money you're putting in your savings account has been taxed. It works the same way with a Roth IRA. The difference between that and the Traditional IRA is that the Traditianal IRA contribution would be deducted from your paycheck BEFORE income taxes are deducted (401K also works this way). Then when you withdraw funds from either of these accounts you pay the income tax that you deferred at the time you received your paycheck. I hope that helps.

Brandi of PA 11:08AM September 04, 2012

I don't understand why you'd have to pay taxes on it in the first play. Taxes are taken out of your check when you're first paid, and then you file taxes of course each year, so why would you pay taxes on money that's already yours? Maybe I should talk to a banking professional, but I think that's ridiculous. I don't pay tax on my savings account, so why would I pay tax on my retirement account?

Amanda of TX 9:59AM September 04, 2012

Although I believe a ROTH account will provide more benefits than the traditional retirement qualified accounts. I cannot recommend it as the best vehicle for growth and accumulation. Being penalized on any amount of money that is YOUR own money, does not sit well with me. I welcome other more secure investment options, that allow you to remain in control and access your funds when needed completely TAX FREE. I recommend alternative saving vehicles and often suggest the video seen at www.yourmoneymd.com under "Must See".

Jaeniq of CA 3:03PM July 17, 2012