They're pretty cool. They're made with after tax funds, so no taxes will ever need to be paid on that money ever again. This includes the earnings. This is all assuming you're making qualified retirement distributions (withdrawals).

As far as comparing traditional to Roth IRA's, it all comes down to what your tax rate is now compared to your tax rate at retirement.

If you're making peanuts this year and will probably be in a higher tax bracket, you're best putting your money in a Roth (pay the taxes now). If you're making the most you will make in your life this year, you're probably better doing Traditional, because you'll probably be in a lower tax bracket when you're retired and not bringing in top income.

The proper choice all comes down to when you are going to be in a lower tax bracket, now or retirement. Pay the taxes when your tax burden is the lowest.

>>1018553
/thread.

I've got one
Start ASAP if you are going to use one. Compound interest is an amazing thing

>>1018553

Thanks for the info. Accountant here so I'm very familiar with how they work. I was inquiring about the various investment options with a Roth Ira. If you go on vanguard there are many options. I was leaning towards index funds.

>>1018571
Holy shit who hired you as an accountant?

Or by "accountant" do you mean "receptionist"?

IRA's are one of the greatest tools around.
In short open up both.
max out the roth 5k and keep going into the other.
Once you've got about 25k in investment accounts, consider a
Self Directed IRA.

You basically take your tax deffered/free money and invest it in your personal LLC which is free to invest and expense however it pleases. all distributions back to the IRA are untaxed.

Work for the company, company house/car/meals/trips
Full access to pre tax dollars to buy stuff and expense it to the company.

>>1018577

Cpa and auditor. Do you even know what an Roth Ira is? The fact you were confused by my post shows you are inept

>>1018582
>Take money that would ordinarily compound and spend it
>after all, a retirement account is just another word for piggy bank.

Go be stupid elsewhere.

>>1018590
I started mine years ago by doing a few hours worth of reading. The fact that you're coming to a mongol basket weaving club for serious financial advice shows your ineptitude much more than it shows mine.

Seriously. You work with money. This is like the one thing you should know how to research yourself.

>>1018591
>Take money that you'd normally spend after taxes
>Don't spend taxes on it.

Shut up child

>>1018595

I'm an auditor not an invester, you inexperienced ape. Why do you think we are experts investors, we are not. I don't handle peoples money. I make sure people are following GAAP and give an opion if the financials are fairly presented.

Know who the fuck you're talking about before you generalize and assume.

>>1018571
if you're looking for that, covered calls on index funds.

https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/a-better-long-11-05-2015

>>1018591
You're right and wrong. You're right in that generating extra waste is stupid.
You're wrong in that taking a 15% minimum discount on regular expenses is stupid.
As well as accessing pretax dollars to purchase tremendous real assets. is top tier.

I have a TFSA (Canadian equivalent) I opened in college through an online discount broker. Served me well.

>>1018607
Stop shilling your stupid site. Reported.

Your advice is uniformly terrible and you are a cancer to this board.

Honestly I feel like the next financial crisis is going to have something to do with everyone putting their money into funds. It's a stupid amount of money.

>>1018669
YES! Let's wipe the scourge chinaman from our board!

>>1018674
Govt will just introduce an annual tax on monetary assets - say, 5% - so unless your money is all locked in a safe, you're going to pay. Wonder why Chase has now banned cash from being stored in their private safe's? (not going into "but how will they know...")

>>1018674
the new "run on the banks" will be funds liquidating concurrently and no one having access to their money

>>1018779
>the new "run on the banks" will be funds liquidating concurrently and no one having access to their money
If you ever read the Investment Company Act you'd know why this is a stupid comment. But no one here is smart enough to know what the Investment Company Act even is, let alone read it, let alone understand it.

It's lonely being a genius.

>>1018776
They already do this, it's called inflation, and the fact that it's been extremely low for the last 8 years even as the Fed has dumped insane amounts of money into the system is why things have taken so long to recover.

>>1018553
This is good info