Terry’s Three Tips: Roth IRA’s-A Winning Investment

1-Why are Roth IRAs awesome? A Roth IRA is a type of retirement account. Roth IRAs are essential to any investment portfolio for several reasons: They grow tax-free, you can withdraw from them tax-free (after age 59 ½ and the account being at least five years old), and there is no minimum monthly withdraw requirement. This allows you to be more in control of your hard-earned money! For more details about Roth IRAs, check out the article 8 key benefits of a Roth IRA | Vanguard.

2-What should my Roth IRA be made of? Mutual funds can stabilize risk while also helping your Roth IRA grow. The four types of mutual funds are growth, aggressive growth, growth & income, and international. While there are countless choices when shopping mutual funds, choosing ones with long track records of performance is a tried-and-true best practice. To learn more about mutual funds, I recommend this article How to Invest in Mutual Funds - Ramsey (ramseysolutions.com).

3-When should I start my Roth IRA? Before enhancing your nest egg, ensure that you have paid off your consumer debt, built up your emergency fund, and saved for a down payment if you plan to be a homeowner. Once those critical steps have been followed, a wise financial advisor can help you select a diverse group of proven mutual funds to help the Roth grow to its potential. In case you missed my article Terry’s Three Tips: How a Finance Coach is Different from a Financial Advisor (ashtonterry717.wixsite.com), I’m here as a finance coach to walk you through the steps of winning with your money, while the financial advisor can provide specific products, resources, and tools to continue the winning streak.