Dear Reader,

Tuesday’s installment of IRA Accelerator made the case for ditching your no-fee IRA and gaining true investment freedom for higher returns.

Banks, brokers, and mutual funds are more than happy to handle your IRA “for free” in the hope that you’ll stay locked in to the financial products they want to sell. You may like the convenience they offer, but you’re being blocked from alternatives that could deliver fatter profits and faster growth.

The bigger your IRA gets, the more important it becomes to have the right kind of IRA. Would you benefit more from a traditional IRA and tax deductions now or from a Roth IRA and tax-free withdrawals later?

It can be a puzzling question… until you approach in in just the right way, as you’ll discover in today’s installment of IRA Accelerator.

Enjoy,

Ed D’Agostino
Publisher and COO
Mauldin Economics

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Your Roth Decision

You’ve probably already plugged into the power source that makes IRAs so attractive—tax-free compounding. That’s what allows your IRA money to grow faster, and it’s why 40 million Americans have IRAs.

An IRA is one of the few no-lose offers that savers and investors get from the US government. Saying “Yes” to the offer and opting for faster growth is an easy decision. But what comes next isn’t so easy. Should you go with a traditional IRA or a Roth IRA?

The money you put into a traditional IRA generally is tax-deductible, which is attractive. But later, when you start withdrawing from your traditional IRA, the money comes to you as taxable income. Not so attractive.

With a Roth IRA, on the other hand, your contributions are never deductible. But if you wait until the year you turn 59 ½ years old, all the money comes out 100% tax free whenever you want it.

So which is better?

[Click here to read the full article]