Is it a wise idea for a 24 year-old to invest in a Roth IRA? I would like to start saving for my retirement, .

Question

But I'm not too sure which on is the best. I believe the Roth IRA is the best one, but I'm not sure. What do you think?

Answer 1

Generally, yes. There are two exceptions:
1. If you will need the money before age 59 1/2 and for a purpose that does not qualify for a penalty free withdrawal, then do not use any type of IRA.
2. If you are currently in a high tax bracket and expect to be in a lower tax bracket when you withdraw the money, and can deduct traditional IRA contributions, then use a traditional IRA and take the deduction.

Answer 2

Roth is the way to go. if you invst 3000 a year from 16-21 and never touch that Roth again you will cash out at over a million with a Roth. the younger the better and the Roth beauty is you get to take your profits TAX FREE , the tradiotnal ones don't let you do that and Roths are fantastic especially for a young person, if you can max that out each year in ten years you will be further ahead than almost everyone your age, because mid 30's is when we start to panic and you will be prepared

Answer 3

Normal advice is to invest in your 401k to get at least the match, then additional savings would target a Roth IRA, then continue funding the 401k if you can

Answer 4

Roth IRA's are always a good idea
as well as a life policy which can be used as a financial vehicle as well. ESPECIALLY at a young age.

Answer 5

"it actually relies upon on your nicely-known mark downs yet ROTH IRA is approximately retirement and that i do no longer think of it extremely is healthful to think of roughly retirement once you're a teenager." it particularly is a *poor* answer. no longer basically is it healthful, at any age, to devise to your destiny, it extremely is smart. the faster you initiate, the greater you will finally end up with later. Compounding is genuine. earnings in a Roth assemble tax-unfastened - unlike a nicely-known brokerage account the place you will pay tax on your earnings each year. the factor is to construct up *mark downs*, no longer "spend it once you pick it" - that's plenty too elementary to do for frivolous motives - like luxury automobiles - from undemanding bills. apart from, a Roth IRA helps you to make pre-retirement withdrawals of earnings without tax or outcomes for particular applications which incorporate academic expenditures and putting money in direction of a universal-time residing house purchase. and you will withdraw contributions whilst they have been sitting in there for a minimum of 5 years. So it extremely is not like the money can by no potential be touched till you're fifty 9.5 (nonetheless i might advise leaving all of it in there till you extremely have not have been given any determination yet to faucet it). "possibly you are the subsequent bill Gates. Do you think of he socked away $10,000 i a retirement account at 19? Does it make any distinction if he did?" because of the fact *this variety of high-quality variety of* human beings finally end up billionaires and don't might desire to difficulty approximately the place their retirement money is coming from, right? So all and sundry might desire to easily parent they're going to be that fortunate a million-in-10-million and not difficulty. is this a humorous tale? smh I comprehend the unique poster is long long gone now, yet others might are available the time of this positioned up and settle for the undesirable advice above. The OP has the final theory. take great thing approximately each and every tax-favourite mark downs motor vehicle you may, as quickly as you may, to the comprehensive quantity you may arise with the money for. 40 years down the line, you will finally end up in plenty greater valuable shape than in case you preserve on with the approach the faster responder espoused.

Answer 6

Yes, if your income is qualifying. Pay your tax now and let it grow tax free.

Answer 7

Whether Roth or traditional I can't say. But you can't go wrong in starting now. You will never regret it. Good for you.

Answer 8

Talk to a financial counselor, but being young, I would recommend something that is higher risk, like a mutual fund, so that you can get higher paybacks. I think once you've gained more, then you can play it a bit wisely, as you will need it more and more as you grow older.