It is safe and easy to set up, it is backed and insured by the U.S. Government, there are no fees or charges, no minimum deposits required, and perhaps best of all, you can set it up right now -- it is that simple and fast.
The thousands of pages of the federal tax code -- and the tens of thousands of pages of ensuing regulations and judicial rulings -- offer many ways to reduce your taxes. These arrangements are often nicknamed loopholes when they apply to only some people.
Paying for college is challenging enough. Paying for college while saving for retirement can be nearly impossible. There is only so much money to go around. Roth IRAs can be a great way to bridge the gap between paying for college and saving for your own retirement.
So let's say you've got the basics down. You've decided you're a moderately aggressive investor looking for growth, and you've researched and chosen a couple of initial investments. Are you ready to buy? Not quite.
Everyone's situation is a little different, but unless you expect your tax bracket to drop in the future, I would say that for most people with a choice, the long-term benefits of the Roth IRA override the short-term tax deduction of the traditional IRA.
This year, thanks to a few tweaks to the tax code made by the IRS, you can contribute more to your retirement. The money invested today, that grows at a modest 5 percent, will be worth four times as much in 30 years. Find out what you can do now to maximize the growth of your nest egg.