TEACHERS & COUNSELORS |
BUILD A MONTHLY BUDGET |
TEST YOUR KNOWLEDGE |
FINANCIAL ARTICLES | FINANCIAL ANALYSIS | CONTACT
|There are many different types of Individual Retirement Accounts (IRA). For ease of this discussion we will focus on the type that would be
a good option to supplement your retirement Thrift Savings Plan. A Roth IRA is a very popular plan that is a good choice after you have
enrolled and contributing to a TSP. The reason is, a Roth IRA investment plan uses after tax dollars, which means you contribute to a
Roth IRA from your Net Income, after your pay has been taxed. The benefit is when you withdraw your investment at retirement age,
earliest at 59 ½ for this discussion. *The money will come out tax free, not counted as income, which is a huge financial benefit. Where
else can you get tax free money-outside of your parents or grandma at Christmas. Unlike the TSP, a Roth IRA doesn’t have pre-arranged
investment choices. Most Roth IRAs are selfdirected, or managed (unless you hire a professional) by you the owner. Which means
you must pick the investments for your portfolio. This will take research, time, and knowing your risk tolerance.
Many of the online discount brokerage houses offer detailed education and free help for individuals who want to take hands-on approach with their investment portfolio. With a little work, like a TSP, a Roth IRA can be set-up on auto-pilot. To open a Roth IRA account it will take between $50 to $2000, depending where you go and what you plan to invest in. IRAs have a many rules and regulations, income limits, contribution limits which can change each year. We recommend you do research to lean more about IRAs, especially a Roth IRA.
A few of the many Roth IRA Benefits:
Keys for starting your Roth IRA:
* Always consult a “qualified” tax expert for complete details.
TSP Payday - Millionaire
Teachers & Counselors |
Build a Monthly Budget |
Test Your Knowledge |
Financial Articles |
Financial Analysis |
Copyright Academy of Financial Literacy, Inc 2012 - 2020