Do you know what your income tax rate will be in the future?
The answer to that question is key to your retirement planning. If you think your tax rate will be lower in the future then it makes sense to avoid paying tax now through a tax-deferred investment vehicle like a Traditional IRA.
But with a mounting national debt, many people believe personal income tax rates will eventually be forced to increase.
Even if the national debt somehow gets taken care of, the government doesn’t tend to lower a tax once it is set.
If tax rates are going to go up the best retirement account for you to open if you qualify is a Roth IRA.
You will pay income tax today and never pay income tax on your nest egg again.
Where to Open a Roth IRA
Once you’ve made the decision to open a Roth IRA there are a number of companies that are happy to accept your contributions. The number of options you have can be overwhelming: do you go with a discount broker, a full-service broker, or direct to a mutual fund company?
Starting a Roth IRA can easily be the single best choice you’ve made of your entire life. Well, other than ordering a Double Double from In-N-Out Burger, of course. –if you haven’t tried it, you’ll just have to take my word for it Maybe you want to open a Roth IRA, but don’t because you think it takes a large chunk of money to get one started.
Guess what? It doesn’t. This is a common misconception that I run into with many investors wanting to get started but thinking they just don’t have enough. I’m here to tell you how easy it is to open a Roth IRA and how a little bit of money can go a long way to receiving tax free money at retirement.
Alliance Wealth Management, LLC (“Alliance”) is a registered investment adviser offering advisory services in the State(s) of Illinois and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Alliance in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.