A Roth IRA offers income earners in the US another way to invest (apart from the Traditional 401K offered by your employer).
Should you take advantage of it? When does it make sense to invest in a Roth?
If you have any investments outside of your 401K (and I believe you should!), compounding and career growth will ultimately push you into a higher tax bracket. If that happens, a Roth makes a lot of sense. But if you have only 5 or 10 years to retirement, a Roth IRA might not be of much benefit.
More on the topic from Schwab.com
And here is a Roth IRA v/s 401K calculator from Bankrate.com
The information provided here is my take on finding the best investment options for me and for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
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