5 reasons you need a Roth IRA

With this indispensable savings tool, your money grows tax-free, you can invest in almost anything and you get several cool perks.

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Feb 12, 2014 7:42PM
Very simple and easy.  There is no reason not to establish some sort of tax sheltered or tax-deferred savings vehicle.   After all, its not that we should be afraid of leaving the world
too soon...its more that we should be afraid of the future actually arriving, then find we
did not adequately prepare.

"Pay yourself first"  should always be the rule, not an exception or option. 

Feb 12, 2014 9:37PM
Duh.  Of course a Roth IRA is better than no IRA.  The relevant question is whether a Roth IRA is better than a Traditional IRA.  This article doesn't address that question very well.
Feb 13, 2014 11:02AM
"Stick to no-load funds with low expense ratios (the average expense ratio for stock funds is about 1.3%)."

I would suggest you take a look at some of Vanguard's ROTH IRA TARGET DATE FUNDS because there is no load fee and the expense ratio is ONLY 0.18%.

If you are paying 1.3% in fees - you are getting ripped off big time - and that means that over time, it can literally be tens of thousands of dollars in losses going to high "fees" (annual expense ratios and also the often hidden additional 12b1 fees).  1.3% is a joke!
Feb 13, 2014 10:57AM
Some terrible suggestions in this article - any retirement account is NOT an account you should even think about tapping for expenses along the way in life like buying a house. You lose the benefits of compound interest on that money you'd pull out ;  while one might think they are using a slick trick to fund today's living, in the end you are stealing from your future self. 

 Money put into any retirement account should not be touched before you retire ... I have seen several friends do that and in the end their retirement account is very low,  while others of the same age that didn't raid theirs have well over a million dollars. Disasters happen, but short of that never dip into your retirement accounts until after retirement.

 And FYI,  Vanguard offers a nice target retirement date option with fairly low fees for $1000 minimum - just set my daughter up with a Roth with them to get her on the right path. Set it and forget it.
Feb 13, 2014 11:59AM
A Roth IRA is a no brainer.  They are easy to set up and arguably the best way to save for retirement.  You don't need to put piles of cash in every year, but 8-10% of your income should be doable for anyone with any discipline.  There really is no need for the proposed "MyRA" that Barry mentioned in the State Of the Union Address. 
Feb 13, 2014 12:21PM
When I first heard about Roth IRA's was on CNN with Clark Howard who is a financial expert. I have always enjoyed watching him and all the good advice he had to offer. I wished I knew about that much earlier in my life. However, I have a 25 year state pension to look forward to retiring on in 2015. 
Feb 15, 2014 8:56AM
Save outside of retirement plans for non retirement needs. Even if you avoid a penalty, you still lose the goal of retirement savings.
Feb 17, 2014 8:44PM
my wife and i make too much to contribute to a roth-ira   :(    wait     :D
Mar 15, 2014 11:28AM

Didn't bother going through the slide show...We have different accounts mentioned.

But from the legitimate comments,,(non-conspiracy or Obama rants)

I see no mention of Conversions out of IRAs to ROTH IRAs....

This is also easily done and "without tax consequences" depending on age and income at time of doing it...Plus amounts converted..?

Many different rules apply from IRS, so check with brokerage house and your tax person..

You can open IRAs or ROTHs or Rollovers through several discount houses and "self direct" the investments yourself, quite simply with a little advice; Which they provide for free normally, as long as you direct the trades at minimal cost of about $8-12 per..

There may be a minimum deposit of $500-2500...?? But usually not any yearly fees.  

Mar 16, 2014 5:00PM
Could never do a Roth IRA.  My income has always been too high and converting my traditional IRA to a Roth would hurt because I have 400% gains in my IRA, plus I'm currently in the top tax bracket.  But for those of you who can do a Roth or are in a low tax bracket and can convert a traditional IRA to a Roth, I'd do it for sure.
Mar 15, 2014 11:00PM

To add to;  Some of the "conversions" were done after retiring and before drawing Social Security.

But have converted more on a yearly basis since, staying under certain "income threshold."

Not everyone can do this...We were in an unique position.

We retired early, and I bought out all pensions....Rolled 401s.

Otherwise you have to wait until 59 1/2 to draw off most IRAs without penalty.

Mar 15, 2014 10:45PM

Eric the ron... The word "depending" was right in the same sentence..


Income at time of conversion....

And amounts converted...From the IRA to a ROTH..

Thanks for pointing out for "clarification.."

But I also mentioned "different rules apply from IRS".."Check with FA/BH and/or Tax(cpa) person."

Many withdrawls from IRAs may or may not be taxed...? (depends on circumstance)

If you don't "meet certain income thresholds," and they are using a "Standard Deductions."

There are age restrictions on withdrawls also, without taxes or penalties.

EVERYONE may be different, and THEY need to get PROFFESSIONAL ADVICE...

We did "several conversions" and did not have to pay any tax"....And some we paid $100-300. 

Feb 15, 2014 2:52PM
Beware the ROTH!  I'll give you one good reason why NOT to open a roth ira: you are trusting the government over the next couple decades not to change the rule on you.  And before you reject the notion that our benevolent, altruistic government would never change the rules on retirement accounts.......ask some of the municipal employees in Stockton Ca how their trust in the government worked out for them.
The hole roth conversion hyp a few years ago, where our benevolent government allowed you to convert a traditional ira with favorable tax treatment was nothing more than a money grubbing scam by the DC-wall-street oligarchy.  The wallstreeters clean up with fees they charge for the conversion and the DC slime gets a bunch of tax revenue.
Best to go with a traditional IRA that keeps government hands out of your pocket until absolutely necessary when you begin withdrawing as opposed to hading uncle sam a pile of your hard earned dollars to day, cross your fingures and hope they don't decide to take more later.....the fundemental question to ask yourself is: is the US government a trustworthy institution to partner with.........better think long and hard about it.

Feb 13, 2014 1:49AM
Tell my people. If you are going to be rich at retirement and have no use for this money than go for the Roth. You can leave it to an heir and they get it tax free. If not, than go for the traditional, we can work out the taking of that money tax free later.
Feb 13, 2014 11:25AM
Obama administration has :
Lost control of the situation in Afghanistan , Pakistan , Iraq, Syria, Iran,  
Has crippled the U.S.A. , crushed the medical care system , Lied about creating job opportunities at all levels, Destroying the education system through out the U.S. and, driving college tuition cost through the fricken roof.  Do I really need to go into to their criminal involvement with NSA, IRS, FAST and FURIOUS , BENGHAZI, and OMG, that very ugly table cloth Michelle Obama was dressed in at the State Dinner. 
The biggest reason you need a roth 401k, is so the government can confiscate it , and
redistribute that money as they see fit.

Feb 13, 2014 9:23AM

I started a roth IRA, of course the company I took it out with charged me 5%. I had stocks.

If I didn't make any money State farm still got their 5%. 

Feb 13, 2014 5:57AM
Yeah sure? Like a hole in the head you need so the Gov't can dig even deeper into your money by higher taxation. The less one has the less they(Gov't) can get. Don't make it easier for them to rip you off and they will do it sooner or later.  Who's paying for the give away programs now and to be?
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