In this video, I talk about the superpowers of the often overlooked Roth IRA account. I go through what it is, the rules around it, and the three main benefits that it provides.

Time Stamps:
00:00-01:05: Intro
01:05-05:28: The Benefits of a Roth IRA
05:28-07:53 : Withdrawal Rules
07:53-10:18: Tax Free Compound Growth Example
10:18-13:27: Retirement Income Diversity Example
13:27-14:27: Wrap Up

www.baskinfp.com/post/34-the-super-powers-of-a-roth-ira⁠

—
⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Download the Ultimate Military Finance Checklist( ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help?
⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Book an intro call⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ with me to see if we would be a mutual fit (

Questions or comments, drop me a note at: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠erik@baskinfp.com ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ (mailto:erik@baskinfp.com)…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERT IRA TO GOLD: Gold IRA Account

CONVERT IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

A Roth IRA is a powerful retirement savings tool that offers unique benefits and advantages for individuals looking to build wealth and secure their financial future. While traditional IRAs and 401(k) plans are more common, Roth IRAs offer some distinct superpowers that can make a big difference in the long run.

One of the key benefits of a Roth IRA is tax-free growth. Unlike traditional retirement accounts, where contributions are made with pre-tax dollars and withdrawals in retirement are taxed as income, Roth IRAs allow your money to grow tax-free. This means that you won’t owe any taxes on your investment gains, dividends, or interest earned within the account. This can lead to significant savings over time, especially if you have many years until retirement.

Another superpower of a Roth IRA is flexibility. While traditional retirement accounts have strict rules and penalties for early withdrawals, Roth IRAs allow you to withdraw your contributions at any time, tax-free and penalty-free. This can be incredibly valuable in case of emergencies or unexpected expenses, as you can access your savings without incurring additional costs. Additionally, Roth IRAs have no Required Minimum Distributions (RMDs), so you can leave your money invested for as long as you want, allowing it to continue growing tax-free.

Furthermore, Roth IRAs offer estate planning benefits that can help you pass on wealth to your heirs tax-efficiently. After your death, your beneficiaries can inherit your Roth IRA and continue to enjoy tax-free growth, or they can choose to distribute the funds and pay taxes on the earnings. Either way, your loved ones will receive your hard-earned savings without the burden of hefty tax bills.

To take advantage of the superpowers of a Roth IRA, it’s important to start saving early and contribute regularly. The earlier you start, the more time your money will have to grow and compound. Additionally, be sure to max out your contributions each year to make the most of the tax-free growth opportunity. While there are income limits for Roth IRA contributions, there are ways to work around them, such as through a Backdoor Roth IRA conversion or a Roth 401(k) rollover.

In conclusion, the superpowers of a Roth IRA make it a valuable tool for long-term retirement planning. With tax-free growth, flexibility, and estate planning benefits, a Roth IRA can help you build wealth, save on taxes, and secure your financial future. If you haven’t already, consider opening a Roth IRA and take advantage of all the benefits it has to offer. Your future self will thank you for it!