Pop quiz. What’s the greatest wealth-building tool?
Dave Ramsey says it’s income, while Daniel Mollat wrote a book entitled, “Stock Options: The Greatest Wealth Building Tool Ever Invented.”
For my money, it’s the Roth IRA.
What’s a Roth IRA (And Why You Need it In Your Life)
Roth IRAs were first introduced in 1997 and are named after former Delaware Senator William Roth. Roth IRAs are simply individual retirement accounts (IRAs) that permit tax-free distributions.
A Roth IRA is a qualified retirement plan, just like a traditional IRA. The most notable difference between these accounts is how they are taxed. Also, because Roth IRA investments are funded with after-tax dollars, they are not deductible. However, when the funds are withdrawn, they are deductible….