In my humble opinion, there’s no reason in the world why you should have a traditional IRA. Every bank and every brokerage TV commercial is touting the traditional IRA where you still have to pay tax at the end of your life when you take the money out.
I don’t understand that. Again in my humble opinion everyone should have a Roth IRA, unless you make too much money to open one. And there is a point where if you make a certain amount of money you can’t open one. Which is another reason to open one before you start making a bunch of money.
The Roth IRA Is Superior Over The Traditional IRA
I personally have multiple IRA accounts. I started each one of them with a very minimum amount ($300). And I have grown all of those well into the hundreds of thousands and one is approaching a million dollars.
Because I had already paid the tax on that $300 I used to open the IRA I will never have to pay tax on the amount I grow it to when I take it out.
That’s right…no matter what I grow it to, I will never pay tax on the profits earned in the account when I take it out. I don’t understand why anyone would choose to do a traditional IRA if they had the choice to have a Roth IRA.
Everyone Needs A Roth IRA
Given the economic state of the US, do you think taxes will be lower or higher in the coming years? Will a loaf of bread be higher in future years? Of course! I often pose this question to my Money Partner candidates, would you rather pay taxes today on the ‘seed’ or would you rather pay taxes on the ‘harvest’ when taxes will probably higher???
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog bi-weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).