Smart Reasons to Save, Use and Invest Money

25 Responses to Roth IRA Unusual Benefits Part 2

    • Thanks, I find that dividend tax shield is one of the best “not well thought about” perks of a Roth IRA. It really is a powerful instrument…

    • Yep, that’s pretty commonly know (I hope). The inheritance mention in my article above is what you call the heirs part, skipping probate (priceless) :)

  1. As much as I don’t like withdrawing from this retirement account, the emergency fund aspect is very useful. I have heard of some people using it as an effective college savings fund for children. It a tax effective way to maintain control of those assets.

    • It’s versatile, that’s for sure!

      I have to admin I do like playing the capital gains and dividend advantages of a Roth Ira…

      I went with a 529 plan for my kids, I maintain control over it and can even reassign it as I see fit. But a Roth Ira is a good college saving plan too, but I’d rather use it for myself (mauhaha)

    • Thanks!

      I’m trying to look at Roth IRAs from a different angle. I hope others find value in them. In some ways Roth IRAs is the Rembrandt at a garage sale that nobody realizes has value and is selling for $1.00 with now buyers. :)

  2. Yes, last year you mentioned being able to withdraw all except for earning from your Roth, my mind instantly went to the Roth being an effective shelter. That’s because of the type of investor that I am (I know we share investing philosophies). I love that you wrote about it. My belief is that it is not written about as much because so many people who are younger do not concentrate on portfolio income but rather portfolio growth via appreciation.

    • It’s funny, but some of the stuff I wrote earlier I actually hated doing so because I knew not as many people would see it. My thoughts around the Roth IRA topic hasn’t really changed, but now that I have more visitors to my site, and so it’s worth repeating in more detail.

      If I quadruple in size again, I will probably spin it another way to replay the message. I think some things need repeating for a larger audience, and if I can spin it in such a way that makes it enjoyable for those that have visited in the past, then all the better.

      This is one of the few financial topics that needs to be heard, understood and acted upon…

      Of course I love that the capital appreciation that occurs from successfully selling securities is a nice perk too. Lately, I’ve been very happy with my Roth IRA’s performance! Now if I just had more money in it…

      • Feel free to repeat yourself. Everything is repeated in some ways. I’m glad I don’t have to talk about new topics every week either! I completely understand your sentiments about saying stuff before your audience has girth. If I may, let me share my experience. In the period of one week, I got 50,000 visitors all from two posts. Before then, I had virtually no subscribers and traffic. Yet after that week, a couple hundred subscribed from just those two post; I didn’t even have a subscription button displayed to be honest, but they figured it out. The point is, you never know who’s going to see your content and when they are going to see it. Share, reshare, repurpose…it’s all good!!!

        • Great point! A lot of our posts are EPIC thought, so it’s not to surprising to me in your case :)

          When I read your articles, it reminds me of when I was in college reading a truly interesting article on finance. Great stuff, glad you’re back!!!

          • Awe, thanks Don. I’m still trying to learn this blogging thing. If I was willing to press publish more, I would be in much better shape traffic-wise, but I wouldn’t be happy. My posts wouldn’t be the way I want them to be. I’m working to get back on the right track again. It’s definitely a process, so wish me luck, as we travel down this path together. I had a good week, so no complaints on my end :) Cheers!

  3. Unfortunately, I do not qualify for a ROTH. But if I did I would definitely take advantage of it. When I have children I will make sure they fund their ROTH when they are in lower tax brackets

    • I think that’s awesome that you don’t qualify! The Roth is great for the most of us, but if you make more than the limits… well that’s even better! :)

      Yes, I’m definitely going to start one for my kids once they have some earned income, in the mean time, I have UGMA accounts for them…

  4. Roth IRA Unusual Benefits…

    Do not ignore or pass on one of the greatest governmental investment instruments for the middle classes! This truly is a gift from the government!…