Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Seek Professional Help

Seek Professional Help - For most of us our days are busy enough and trying to plan an investment strategy is beyond our means of understand or our time requirements....

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Roth IRA

Definition: An individual retirement account (IRA) that has special tax advantages.  The investor pays taxes upfront and it then grows tax free after that.

TeenAnalyst Advice: A Roth IRA has many tax advantages for people who are thinking about retirement.  The investor pays taxes up front and then the money can grow tax free.  They are able to take money out once they reach age 59 1/2.

To see the tax benefits, think of this.   You invest $100 into your Roth IRA.  You pay 30% in taxes up front so only $70 is actually invested.  But that $70 grows into $1000 by the time you retire and you get to take out $1000.  If you had a regular account, you would have to pay taxes on that $1000.  Paying 30% up front is $30.  But paying it at the end is $300!

 

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Distribution Plan

Distribution Plan - a distribution plan is a plan executed by mutual fund companies. The purpose of the plan is too collect and assesses fees to shareholders of the funds, to offset expenses. The expenses could be for advertising costs or sales incentives (rewards for good behavior). The distribution plan...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com