Every good listicle must come with an epic starting point. That is no doubt the case here today, so allow me to introduce what I think should be the first investment on everybody’s financial bucket list.
The Roth IRA
If you guessed it, let me know down in the comments.
The Roth IRA was indeed my first investment of choice and for very good reason. Let me share with you the power of this investment vehicle!
Important distinction: I use the word “vehicle” for a reason. A common misconception among those who are not familiar with retirement investing is that the Roth IRA is the investment. As a matter of fact, it is not. A good way to think about it is similar to shopping at the grocery store. The Roth IRA is your shopping cart, and you need to choose which investment products you want to hold inside your cart! Simple, right?
I would hate for you to open a Roth IRA thinking you will wake up a millionaire one day only to realize the money is sitting there stagnant. Believe it or not, I’ve heard stories about this happening.
The Roth IRA is an individual retirement account (IRA). It’s funded with post-tax money which means you have already paid Uncle Sam. Since you were so nice to give him your hard-earned dough upfront, he will allow your investments to grow handsomely, tax-free, …….