What can a Roth IRA do for you? - Vanguard

Learn the benefits of investing in a Roth IRA. In this Vanguard® Plain Talk on Investing™ video, Joel Dickson of Vanguard's Quantitative Equity Group explains that Roth IRAs give you the potential for tax-free growth while you're saving for retirement and tax-free withdrawals after you've retired—when it matters the most. Learn more at Vanguard - http://www.vanguard.com

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Category:

Education

Tags:

• Vanguard Investments
• mutual funds
• Roth IRA
• Vanguard group
• vanguard
• investments
• investing
• Roth
• IRA

[Vanguard]

@TumisHumis Great question. Each year, you can contribute up to the amount of your earned income for that calendar year or $5,000 (whichever is less). You have until tax-filing day to make a previous-year contribution to your IRA, meaning you can still add 2011 contributions in early 2012.

[Vanguard]

@Intronetz Great that you're thinking about saving so early! There's no minimum age requirement for starting an IRA. If you need any help, feel free to call us at 877-662-7447.

[CodiTheJedi]

@TumisHumis No dude.

[tripleflip7]

Good presentation, and I would highly recommend starting one sooner then later, leaning more towards the Roth over the traditional. As a side note, no matter what your job or career is, take some time to educate yourself financially and become familiar with other investment strategies because you never know when an opportunity will open to use a financial strategy you learned years back. Knowledge is both power AND wealth.

[PeriquinTV]

@Jefgg your comment made me laugh so hard. Lol.

[Jefgg]

It would be awesome if an accountant with the last name Roth named his son Ira.

[frediphillips]

@RobloxWeeklyNews1 funny

[randomdude10010]

In reference to the Roth IRA phase-out (the amount of money you can make before you cannot contribute to the account which he talked about at 4:48) once you reach or exceed it what you can do is contribute to a Traditional IRA and very quickly have the account administrator convert the funds into your Roth account. You will have to pay tax on any growth realized during the conversion period, but it is worth it to pay tax on principal rather than principal and growth.

[RebelHQ]

Great explanation :)

I got my emergency fund and now I'm thinking about IRAs.

[RobloxWeeklyNews1]

Hmmm.... I came here thinking this was somthing about the Irish Republican Army (IRA). Hmmm... Well at least I'm here to spread the word that the Irish people are being abused by the UK. Also WHITE POWER! LOL

P.S. I'm not into gangs I'm more like a political kind of guy. I follow the laws unlike the people the media want you to see who are just haters and haters alone with no morle conduct of socalism. Check out YouTube channel ANP14 to understand more about us.

[TumisHumis]

I have a question about Roth IRAs (I'm 18). If I've only made $3,200 so far this year, will I be able to max out my IRA? (I've made over $7,000 in my 2 years of work)

[lilxrich123]

@Intronetz Dude im 27. I totally regret not starting one at your age. I you can, then DO IT!!! I started mine last month.

[Intronetz]

I am 15, could I start a Roth IRA? I would love to start early.

[tauren2005]

@cml4456 The market doesn't always go up as evidenced by the housing crash (which is still crashing by the way). And even when it supposedly goes up, it is measured in US dollars. The FED is dumping trillions of dollars into the market and it is causing inflation. If you measure the market in GOLD, you will see it is crashing.

[cml4456]

@blanknot Think about it, you are already getting out of paying taxes on the withdraws... Why do you think the government would give you a break on taxes when you need money early?

[cml4456]

@classiccafe1 You have to pay taxes upon investing in the Roth.. When you retire and withdraw, you pay no taxes.

[cml4456]

@tauren2005 The market will ALWAYS go back up

[classiccafe1]

@tauren2005 they said you dont pay taxes on a roth you pay taxes on a traditional ira not the roth

[tauren2005]

I think the ROTH IRA is a bad idea. You pay taxes upfront... what if the market tanks your IRA and you lose money? You just paid taxes on a loss.

[stealthrs]

@blanknot The contributions are after tax. Earnings aren't the same as contributions. The earnings are taxed if withdrawn before 59 1/2....

[ERAP1st]

@blanknot he probably meant FEES and penalties and not taxed.

[blanknot]

I don't understand what is said at 3:00. If you withdraw from your Roth IRA before age 59, why would you have to pay taxes? Isn't a Roth IRA already taxed earnings?