You’re never too old for a Roth IRA

Helping my husband build long-term wealth.

View in browser NextAdvisor ISSUE 109 August 9, 2022

Let's face it, in the shuffle of immediate priorities, saving and planning for retirement isn't a walk in the park. We all know we need to save for the future, but more than half of Americans don't know how much they'll need to comfortably retire. My husband is part of that statistic. He's almost 31 years old, and hasn't been able to save up much yet for retirement for a mix of reasons. For one, he grew up in England and hasn't fully figured out America's financial system. Secondly, his employer doesn't offer a 401(k) plan. That's why I want to help him open a Roth IRA. With that type of retirement account, he can invest after-tax dollars rather than pre-tax dollars. His investments can grow tax-free during his working years, and he can withdraw the funds completely tax-free at 59 ½. The tax advantage the Roth IRA offers, according to experts, is what makes it such a popular option with investors. "Tax-free growth for decades on an investment is very valuable," says Stephanie Genkin, a CFP and financial advisor at My Financial Planner. Let's say my husband invests $6,000 annually (or $500 a month) in a Roth IRA and the account grows at a conservative 4% annual rate of return. That $30,000 investment would grow to more than $180,000 in 20 years. If the account grows at an annualized 6%, it would be worth almost $230,000 in two decades. A few things I'll need to go over with my husband are the strict contribution limits and withdrawal rules that come with Roth IRAs. For example, your gross annual income has to be under $144,000, and under $214,000 if you're married and filing jointly in 2022. Due to these yearly income limits, Roth IRAs are a great option for people at the beginning of their investing journey like my husband. In fact, I'm planning to open a Roth IRA for myself to help supplement my 401(k) plan while I'm still early in my career. Luckily, opening a Roth IRA is simple and can be done in just a few minutes. While they have some unique features, opening one is similar to opening any other type of brokerage account. If you also want to open a Roth IRA, below is a list of recommended places to open up Roth IRA accounts, as well as insight from experts on how investors can make the most of their Roth IRAs. We'll likely stick with Fidelity since I already have a 401(k) plan with them and it's currently offering $100 sign-up bonus. But I'd love to know what provider you'd choose to open a Roth IRA account and why — tell me at alex@nextadvisor.com or @AlexGailey on Twitter.     5 Best Places To Open a Roth IRA and Grow Your Money Tax-Free Read the full article       THE BOTTOM LINE Roth IRAs have become a popular retirement savings tool thanks to their flexibility and tax advantages. Consider opening one to supercharge your long-term retirement savings, even if you already have a 401(k) plan. More soon, The NextAdvisor Team     Was this email helpful?       Did your financially savvy friend forward this to you? Subscribe to get our next newsletter directly in your inbox.   Sign up     Your next move Follow us on social media for more great tips like these.

NextAdvisor, 1101 Red Ventures Dr, Fort Mill, SC 29707 ©2020 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. You received this update at edwardlorilla1986.paxforex@blogger.com because you have signed up for our newsletter on NextAdvisor. If you'd like to unsubscribe, click here. At NextAdvisor we're firm believers in transparency and editorial independence. The editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors. We are an independent publisher and comparison service. Our award-winning reporters create honest, accurate, and objective content to help you make financial decisions. However, we are paid for providing advertising services. The compensation we receive and other factors, such as your location, may impact what ads and links appear on our site, and how, where, and in what order ads and links appear. While we strive to provide a wide range of offers, our site does not include information about every financial product or service that may be available to you. The advertised offers may be subject to additional terms and conditions of the advertiser. So, your actual offer from an advertiser may be different than those in this rate table. All information is presented without any warrant or guarantee to you. For more information, please see How We Make Money. Privacy Policy   |   Terms of service