Roth IRAs and Why They’re Your Secret Weapon to Retiring Well

When considering yearly income taxes, many enjoy the benefits of a traditional IRA or any pretax retirement account, largely because they are able to deduct the contribution on their tax return. This is part of a strategy used to secure a lower tax bracket. However, investors that self-direct often enjoy large gains making the Roth IRA their #1 choice – and for a very good reason.

When you contribute to a Roth, you pay taxes up front. You might be asking yourself, “What’s so great about paying taxes up front when you can’t deduct your contribution from your taxable income that year?” Well, when you pay the IRS up front, that’s it, they don’t get anything else. Yes, it’s true. That means no capital gains tax, and no forced distribution at any age. You can buy and sell stocks, bonds, real estate, crypto currency, precious metals, etc. all inside your Roth IRA. This leads to increasing your wealth, year after year, without owing any additional taxes.

Let that sink in for a second.

For example, you are able to purchase an investment property inside your self – directed Roth IRA, your IRA will collect the rent, pay the expenses, and retain any increase in property value. You can sell that property for a huge profit, and purchase another property or investment, and repeat this process over and over without having any affect on your yearly taxable income. When you finally reach retirement age and decide to take a distribution, you won’t have to pay any additional taxes on it – increasing your wealth without taxation.

Don’t have a Roth? Then give me a call. You still have options. You can convert funds from an existing retirement account, or start a new one from scratch. Keep in mind that this is not an all or nothing situation – you can move over some of it, or all of it, depending on your tax situation.

 

Candace Griffin
Business Development Representative
280 S. Ronald Reagan Blvd., Suite 200
Office: 407-434-0200 x 1352
E-mail: cgriffin@nuviewira.com

 

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