Apr 1

Maybe this question will sound weird for somebody, but I just don’t have enough information about Roth IRAs, so I’d like to know what are they. As far as I know this is a good long term investment.┬áCan I use it later for my kids college education?Thanks.

one comment so far...

  • Luke 6:37 Said on April 1st, 2010 at 5:06 pm:

    Well for your kids you can get ESAs (Education Savings Account).

    Only you can contribute to an IRA. They can too but they have to have earned income. If you qualify for a Roth IRA that’s the best option because you contribute post-tax dollars that will not be taxed again. Any gains on the account would not be taxed unless you failed to abide by the rules of withdrawal.

    There are different types of IRA accounts. You can manage your own or they have target accounts which automatically invest you based on when you plan on retiring. Myself, I prefer to manage my own. There are also Money Market IRAs which yields interest which is totally conservative and will not allow your money to reach it’s full potential.

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