Why I love the ROTH IRA!!!

I am 21, and recently started learning about personal finance and retirement. I come from a community where you work till you die. There is no knowledge of retirement funding, and I want to help change this trend.

I love the ROTH IRA because it allows you to save for retirement tax-free! The money you put in the account grows and grows until you start pulling it out when you retire at a minimum age of 59.5 years. You can contribute a maximum of $5,000 if you are under 50 and $6,000 if you are over 50. You can also withdraw your after tax money at any time, no penalty. If you are a purchasing your FIRST HOME you can withdraw any contributions and up to a lifetime maximum of $10,000 in earnings.

It’s a pretty great vehicle, if you ask me.  After doing a lot of research, I realize that it is way better for me to start investing now instead of later. I am going to open one as soon as I get my first job, which will hopefully be soon.

Have you opened up a ROTH IRA? Where did you open it? How much do you contribute to it every year? If not, when are you planning to open a ROTH IRA?
SavvyFinancialLatina

 

I am writing this blog as part of Good Financial Cents’ Roth IRA Movement. Jeff Rose, CEO and found of Alliance Wealth Management LLC, is the creator and wants to make young adults aware of the ROTH IRA. Click on the picture above to be redirected to his blog entry.
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