You'll need a Roth IRA for a wholesome retirement

Saving for retirement makes sense in this world gone crazy, particularly when the shortcomings of Social Security are taken into account. Here are the top five reasons a Roth IRA retirement account is for you, courtesy of Smart Money.

Retiring with a Roth IRA means tax free payments

A Roth IRA enables you to put your contributions in after taxes. Because you have already paid taxes, whenever you withdraw it for pension you do not have to pay taxes anymore. More cash is always helpful. You may be able to get by with a payday advance here or there but they will not cut it when it comes to pension.

There has been a continuing debate on when Social Security will end, since it can't last forever. But let’s assume that it sticks around, and also you believe it will cover you post-retirement. The government hasn’t let you down before, right?

That is not true at all. It’s all too common to read something like this on a Social Security statement: “You can retire on the princely sum of $2,000 per month. You may already be a $24,000 winner!”

Roth IRA functions much better than any kind of 401k mutual funds

A 401k retirement account gives a retiree the option of choosing from one of two different types of mutual funds. That is very limiting. With a Roth IRA, you have a greater ability to handle your retirement resources.

Smart Money points out that Roth IRAs give the retiree a great amount of flexibility when it comes to managing their funds. If there is need, one can take out contributions. Furthermore, a Roth IRA can be used to save for a child’s education. Other benefits are accessible still. This is something to ask your financial adviser about. They will better be able to help you.

Variety in numbers

Putting all your eggs in one basket is never a good idea, and this old saying holds true with your next egg. Because of fluctuating tax rates, it is a good idea to follow the examples of many who put cash in a Roth IRA and in a 401k. Not every person should make this decision. Before doing anything, meet with a financial adviser for help. Be prepared and minimize your need for short term loans.

Data from

Smart Money

smartonmoney.com/5-reasons-why-you-should-never-open-a-roth-ira/

Smart Money

smartonmoney.com/roth-ira-basics/

Wikipedia

en.wikipedia.org/wiki/Mutual_fund

When former news anchors hawk IRAs

youtube.com/watch?v=Wkvn-Vgg-8o