What is a ROTH ira? A ROTH ira is a retirement investment that can have the potential to change your life when you retire. This particular investment can allow you to grow your savings tax free. Letting you get the most out of one of your investments when it comes time for retirement.
Imagine getting to retirement after years and years of working and you saved up one million dollars which feels like the perfect amount of money to live off of. Except when taxes come over $300,000 is taken away from you and your left with about $700,000. Well that’s not fair is it? What if I told you that if you get a Roth IRA instead than you can grow your savings tax free. So your million dollars is actually a million dollars.
Not only does a Roth IRA let you maximize your savings but it also has been shown you have exponential growth with earning compound interest, So 180,000 turns into 500,000 in about 25 years. When we asked a Lake Mary High School student “What do you think a Roth IRA is?”. The High School student stated, “uhhhh, wait isn’t that a medicine, I think I’ve seen at Walgreens”. So its not a medicine… But this goes to show that not a lot of people are aware of this particular investment.
Some might also ask “Why would we get it if it takes a long time to gain value”. Although this statement is true its also not a linear growth but its exponential so it might start slow but it gains very quickly in 10-20 years. Therefore, if you deposit a investment of 10,000 at 20 years old and annually contribute just 1,000, by the time your 65 and ready to retire you’ll have about 2,000,000 according to bankrate.com
Although both the accounts look like they start relatively the same Roth IRA rains superior for a multitide of reasons including, no taxes, bigger growth, and flexible access and withdraws alowing it to also act as an emergency fund. Now we can see why we need to get a Roth IRA right now. You cant wait till 40 to get a savings account, it wont do anything significant. A different Lake Mary High School student states “after learning how effective a Roth IRA can be I believe you should get one because you can retire with more than enough money”.
