Why You Need a Roth IRA in Your Retirement Portfolio, Ep #30 

<p>A Roth IRA is THE best thing since sliced bread. Why? Why do I think it needs to be a part of your investment portfolio? How does it positively impact your retirement income? In this episode of Retirement Made Easy, I share why you need to make tax-free investing a bigger piece of the pie. Don’t miss it!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:37] Roth IRAs are underutilized</li> <li>[5:22] Tax-free income in retirement</li> <li>[7:48] What if you don’t have a Roth IRA?</li> <li>[10:45] Make tax-free investments a bigger piece of the pie</li> <li>[12:05] Dave Ramsey’s FREE retirement planning tool</li> </ul> <h2>The best thing since sliced bread</h2> <p>Roth IRAs are the best thing since sliced bread. Why? With a Roth IRA, you pay the taxes on the money you contribute <em>now</em>. That allows it to grow tax-free <em>forever</em>. A Roth IRA is like a birdcage. You can put anything in it (mutual funds, stocks, etc.). The cat—the IRS—can’t get to the bird in your birdcage. That money is protected. </p> <p>Let’s say a 35-year-old contributes $6,000 to their Roth IRA, don’t touch it for 30 years, and they get a 7% annual average rate of return. At age 65—when they retire—their Roth IRA would be valued at $45,673! Then, they can make withdrawals tax-free for as long as they live. Nothing is better than tax-free growth of your money. </p> <h2>The importance of tax-free income in retirement</h2> <p>Why is it so important? Maybe you have a pension, social security, and rental income. They’ll all be taxed when you withdraw from them in retirement. With all of these resources that you rely on being taxed, a tax-free option for interest and income is beneficial to you in retirement. </p> <p>We can’t control the cost of living in 20–30 years. We don’t know what future taxes will be. We don’t know how long we will live. But you can plan based on the knowns and the rules of today.</p> <p>The biggest regret many retirees face is that they all wish that their Roth IRAs were big