Why should I have a vehicle to keep my mutual funds in? They are easily accessible when needed. I will be taxed at both points in time with or without a traditional IRA. The roth is not an option.
2006-10-04 01:40:55 · 5 answers · asked by SMC 2 in Business & Finance ➔ Personal Finance
You get a tax deduction this year for your contributions.
Tax Deffered Gains
No worry about paying taxes every time you sell a stock. No taxes on dividends either.
You only pay taxes on distributions after you retire, so you have more cash to reinvest, so your money grows faster.
2006-10-04 01:44:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
True ! You WILL BE taxed at some point. so now you simply get to decide if you want a tax break now with the IRA and pay tax later OR pay annually with your mutual funds and stocks.
I personally do BOTH. I figure I have no problem paying my tax on the gains I make annually so I do! I feel later on the government will probably raise its tax and my IRA will be taxed bigger than if I had paid it NOW. But I will have to live with that when the time comes.
The ROTH is good for people who need to be able to touch their money... personally I think its a joke for if I am to invest in my IRA I certainly SHOULD NOT be touching it!!
You already seem to have your answer in the way you asked your question. You will be fine. Posting it here should prove interesting !
Best wishes for a bright future !!
: )
2006-10-04 03:27:16 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
In a Roth IRA the money you're making isn't taxable while it comes time to withdraw it. In a typical IRA, yo pay taxes on your features. A Roth Ira could be made out of shares, bonds, mutual money or in spite of. maximum investment government strongly advise which you make investments as much as allowed right into a Roth. There are limits on how plenty you're able to make investments into an Roth IRA each year. happy to work out you, on the greater youthful age of 26, are extreme approximately saving and making an investment. ascertain you do it each and each month no rely what. I did and am retired and living ok. (2 residences, new vehicle it is paid for, numerous theater shows and eating out etc). existence is nice. wager of success to you.
2016-10-18 11:28:11 · answer #3 · answered by ? 4 · 0⤊ 0⤋
The traditional IRA allows you to earn tax deferred money, meaning that you can earn a little more
2006-10-04 01:45:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I found that my IRA was doing better because It pays the same interest each month ,where other investments go up & down & you can loose in the end
2006-10-04 01:45:26 · answer #5 · answered by Tired Old Man 7 · 0⤊ 0⤋