Comments on: No, I Don’t Think You Should Open a Roth IRA

By: save and go green

save and go green — Sun, 02 Nov 2008 12:57:52 +0000

Roth IRAs are the way to go. The only problem with them is that they have an income limit. Many could argue that at that point, it would be better to invest in a traditional IRA. I still think it would be better because who knows how high our taxes are going to be in the future with the high government debt we have.

By: Janni

Janni — Wed, 26 Mar 2008 02:58:26 +0000

One big advantage of a Roth IRA is that qualified distributions are tax free. But, there are a number of other Roth IRA advantages, particularly with a self-directed account. If you are trying to choose between a traditional and a Roth IRA, here are some things to consider.

By: goldi

goldi — Thu, 07 Feb 2008 03:31:22 +0000

Every situation is different.
For an excellent personal guide go to http://www.itsyourira.com.

By: Q at $1 Million to My Name

Q at $1 Million to My Name — Thu, 07 Jun 2007 21:38:14 +0000

Can you get the credit card debt onto some 0% balance transfer credit cards? Then you could chip away at the debt and also invest a bit in a Roth.

By: Stephanie

Stephanie — Wed, 06 Jun 2007 17:24:17 +0000

Travelin’ Man,

That is a great article – thank you for the link. And yes, the Roth can double as a vehicle for saving for education or a home. But I still won’t be opening one – I simply don’t have enough money to pay all my bills and contribute the minimums needed to open a Roth at this time. (Yes, I’m working on making more money, I’m just not there yet!)

My friend, on the other hand, needs to at least curb his credit card usage first. It’s bad enough to be paying the high interest rates, but adding more the balance will mean he never pays the cards off.

By: The Travelin' Man

The Travelin' Man — Tue, 05 Jun 2007 18:26:10 +0000

There is one reason why you might consider opening a Roth now, as opposed to later. You can use the money in your Roth to pay for your education (or first-time home purchase, for that matter). As a matter of fact, you can take out the money that you CONTRIBUTED any time (not the earnings) tax and penalty-free.

The key, though, for you, is that the money can be used to fund your education. So, you can get the tax privileges of the Roth on the growth and earnings, but the benefit of being able to use the money now.

You might check this article for a more thorough overview:
http://www.kiplinger.com/columns/starting/archive/2006/st0309.htm

By: J.D.

J.D. — Tue, 05 Jun 2007 16:27:23 +0000

First of all, using Safari on a Mac, your name, mail, and website boxes have white text on a white background. That’s right — the text I’m typing them is invisible!

Secondly, great point. Debt reduction first! I should have mentioned that in my post.