Posted on Mar 18, 2023
A Roth IRA can be smart for young adults who 'can't envision' retirement, advisor says. Here's...
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Sun, who is a member of CNBC’s Financial Advisor Council, views a Roth IRA as a dual-purpose account because it allows the investor to have an emergency fund, as well.
“They can use the Roth IRA to save for retirement, but also in case of emergency, they could take the money out,” she said.
“They can use the Roth IRA to save for retirement, but also in case of emergency, they could take the money out,” she said.
A Roth IRA can be smart for young adults who 'can't envision' retirement, advisor says. Here's...
Posted from cnbc.com
Investing
Personal Finance
Money
Posted >1 y ago
Responses: 1
Great article LTC Eugene Chu. If I could could go back in time to when ROTH IRAs were created (1997), I would have done that instead of a traditional ('back in the day', we were like these youngins with their fancy TSP contributions and such and had to rely on IRAs).
I admit, the 'reduce your taxable income' with a traditional IRA or 401k/403b is attractive for the 'right now', if you invest for your future, you're going to have a MUCH better return on your investment down the road because (for most people) your income in retirement should actually go UP from where you are now and if a lot of that is non-taxable, you'll have to give Uncle Sam much less.
I admit, the 'reduce your taxable income' with a traditional IRA or 401k/403b is attractive for the 'right now', if you invest for your future, you're going to have a MUCH better return on your investment down the road because (for most people) your income in retirement should actually go UP from where you are now and if a lot of that is non-taxable, you'll have to give Uncle Sam much less.
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