A Roth IRA compounds interest by growing without taxation, and the individual gets to decide when to take it out. Find out how Roth IRAs work with help from a licensed insurance agent in this free video on retirement planning and personal finance.
Expert: William Rae
Contact: www.hbwfl.com
Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years.
Filmmaker: Christopher Rokosz…(read more)
LEARN MORE ABOUT: IRA Accounts
INVESTING IN A GOLD IRA: Gold IRA Account
INVESTING IN A SILVER IRA: Silver IRA Account
REVEALED: Best Gold Backed IRA
would the investment in IRA be taxed when I decided to take them out?
Lets look at this with numbers:
Assume 10% taxation (cause 10 is nice and easy)
10% tax on 10 kernels = 1 Kernel leaving you with 9 to grow.
each kernel yields 1000 kernels (yay!)
At the end you get 9000 Kernels – Tax free (Yay!! 9K!)
Now, lets say Traditional, 10 kernels, no tax… You plant them and get 10K Kernels but then are taxed 10% leaving you with.- 9K SAME!
So… Reasons for roth IRA: 1) Can remove contributions any time without penalty. 2) Best if taxed at HIGHER RATE Later…