Quote:
Originally Posted by AKmoney
There's some argument as to whether or not it's better to invest in a Roth IRA or a standard IRA. With a standard IRA, you pay taxes later but some argue that by that time, your overall income will be less and you'll be in a lower tax bracket than you were when you made the investment in the first place.
BTW - there are income limits to Roth IRA contributions - the amount you can contribute starts to fall from $5,500 once your income hits $117K. Admittedly that may not be a problem for a young investor just getting started.
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Completely agree. Its definitely worth researching the pros/cons of each. Honestly, its probably a good idea to have one of each, because why not?
If I made $117k I wouldn't be too worried about contributing to a Roth IRA. With smart money management you could easily sock enough away to purchase a few rental properties and live off that passive income pretty much forever.
