Welcome to another #WisdomWednesday blog post. Today’s blog will be about a great investment tool called the Roth IRA and the benefit that I love about it. Before I get into it, I would like to touch on two items that I feel need to be addressed. First of all, I want to make a few comments about my #MammothMonday post with the title Broken Hearted. I received many messages asking me about my well being which I greatly appreciated and I am humbled by. The stress and strain from that situation which unfortunately will be an ongoing issue for now has caused me to be unable to blog yesterday for #TalkingTuesday but that was one of the points of my blog on Monday, the point being that life will constantly come flying at you and you must be strong and ready and you must continue moving forward. Time stops for nobody and nobody should stop on their journeys path. I will continue moving forward and making sure that I continue to do me. Of course I do acknowledge and recognize that it is hard to continue when you feel weighed down but, as long as you do not give up and you keep busy, you should be able to continue even if you are temporarily moving at a snails pace. Just remember, it is much healthier to continue doing something on your path because wallowing could be dangerous for your mental and emotional being.
The next item that I would like to touch on is the Coronavirus. I would like to take this opportunity to use my platform to help spread some information. Continue to live your life without succumbing to fear. That being said, there is too much still unknown about this virus so heed the warnings to constantly wash your hands, try not to touch your face, try not to go to heavily crowded areas and just make sure that you watch reputable news in order to stay informed. The elderly and people with compromised immune systems are most at risk so if you are amongst this group, if possible, self quarantine for your own safety.
Now, I am going to jump to the Roth IRA. I will preface this by stating that I am a Tax Accountant and Business Consultant not a Financial Advisor so you should speak with your financial people to see what fits best for your life. That being said, I love the Roth IRA for one main reason. That reason is that this financial vehicle is obviously for retirement and when you begin to withdraw from this account, the money is drawn tax free. Why is this? It is tax free because when you made the deposits into your account, these Roth deposits are made after you have already paid taxes on those funds. To me, it is a no brainer. When anyone retires, money is a huge factor in determining how you will be able to live. Getting money without worrying about paying taxes on that money when you are no longer working is probably one of the best situations you can be in. The earlier you start saving, the greater the freedom you will have when you retire.
There are a few things that you need to know about the Roth IRA. First of all, in 2020, you can save $7000 in your Roth IRA account and $6000 if you are under the age of 50. The second thing you need to know is that in order to participate in a Roth IRA, your modified adjusted gross income must be below $124000 but if you are married and filing a joint tax return, that number jumps to $196000. If you meet these criteria, please consider opening a Roth as soon as you can.
I would like you to use this blog post in coordination with my #FundMeFriday post where I always remind you to make a deposit into a savings account and for your information, according to my research on Calculator.net, if you deposit $7000 per year (about $134 per week), for 25 years into your Roth account at an average interest rate of 6%, you will earn about 116% return on your money. You just gotta love those numbers so I hope you see how fantastic this type of account can be in your portfolio.
I have a really nice book to go along with this post. It is called Boss Mom. I think the title alone should tell you that there must be some really interesting sections in the book spotlighting strength through daily turmoil. If you have not read this book, try and get a copy from your local library. If that is not possible, here is a link to get your own copy from Amazon >>> https://amzn.to/32Eytcv
If you choose to shop in Amazon, I would greatly appreciate it if you could use the link I have provided. As an Amazon Affiliate, it is possible I can earn a bonus and therefore continue to provide continued content we all enjoy. Thank you in advance!
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